Revenue dept. will continue to collect LOST taxes

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The state revenue department said it will continue to collect and disburse local option sales taxes for county and city governments as it has been doing all along, even though a key provision of the local option sales tax law was ruled unconstitutional this week by the Georgia Supreme Court.

“The Department is studying the decision, knowing that the Court could change all or part of it if it rules on a Motion for Reconsideration,” the department said in a statement released Thursday.

“In the meantime the Department will continue to handle local option sales and use tax collections and distributions in accordance with the statutes as enacted by the General Assembly,” the agency said.

In a ruling released Monday, the Supreme Court said the arbitration method for dividing local option sales tax revenues between city and county governments was unconstitutional because it violates the “separation of powers” doctrine.

The arbitration method, which the Legislature enacted in 2010, “improperly authorizes judicial resolution of the allocation and distribution of tax proceeds, an exclusively legislative power,” the court ruled.

The revenue department collects more than $4.6 billion a year in local option sales taxes and redistributes the money to county and municipal governments, who often disagree on how the revenues should be allocated.

© 2013 by The Georgia Report

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Tags: local option sales tax , revenue department