Attorney General Thurbert Baker has issued an important Official Opinion in favor of local government. The Opinion involves the $18 million in unidentified local sales tax proceeds currently being held by the State of Georgia. These unidentified local sales tax proceeds were collected between January 1, 2008 and May 4, 2009 during the time between when the original legislation expired and new legislation was reauthorized allowing the Department of Revenue to distribute these funds using a pro rata formula. Responding to a request for an opinion by Lt. Governor Casey Cagle, the Opinion makes it clear that the unidentified sales tax proceeds in question remained local proceeds and were never converted to state funds.

 

This means that the State of Georgia is obliged to distribute these funds to local governments.  According to Baker,  the unidentified sales tax proceeds  “…have never been treated as state funds, and their allocation to local governments would not reduce funds reported as available for appropriations in an already tight revenue situation.”  Therefore, distributing the sales tax revenues to counties, cities and school boards as required by law will have no impact the state budget deficit. 

 

ACCG appreciates Lt. Governor Cagle for requesting a review of this issue from the Attorney General and urges all county officials to thank him for his involvement. 

 

ACCG will provide more information as soon as it is available.

 

To review the Attorney General's opinion, click here.