Monticello Files Suit Against Jasper County and Shady Dale

The city of Monticello has filed suit against Jasper County in an effort to settle the Local Option Sales Tax (LOST) negotiations. The tax has to be reconfigured every 10 years, and at the last meeting, the city of Monticello and Jasper County were a good way apart from reaching an agreement.

Much of the negotiations were not open to the press, so it is not clear exactly where they ended, but both entities were initially seeking more than they received in the previous distribution, and the city of Shady Dale also wants to get five percent, rather than the three percent is it currently receiving.

The lawsuit says, “Monticello reluctantly files this as a last resort, due Respondent declining to negotiate further: a stalemate means—$20,000,000 ten year loss in revenue, much from visitors and tourists. Local Option Sales Tax (LOST) is not a “County” tax, it is a City/County joint tax, per Taylor County, 245 Ga. 251. Monticello citizens have always paid 1) County ad valorem taxes, including for Sheriff, plus 2) their City taxes, plus 3) LOST on purchases.

“Negotiations began July 1. Monticello could accept 30% again – no extra % to City or County. Respondent wanted 80% (up from 67): only 15 to Monticello, as Shady Dale wanted 5. This cuts Monticello in half. In August the parties met again.

“There are eight criteria to be considered in negotiating the new split. The suit from Monticello alleges Monticello, per the 8 criteria, equally weighted, desired 35.9%, but dropped to 30 pre mediation, to avoid a dispute. Respondent’s demand, supported by their non-lawyer, non- CPA, Consultant, Eaves Consulting, was 80%. This equals 50% reduction in LOST to Monticello, from 30% to 15%.”

For the past decade, Jasper County has received 70%, Monticello 27% and Shady Dale 3%. When that was adopted, 10 years ago, each entity pledged 2% of their proceeds, to the Jasper County Library. The document repeatedly refers to the 14 services provided by the governments, and how to figure the split based on those criteria.

One point the county has used to increase its share is that Monticello did away with its police department seven years ago, putting an undue burden on county taxpayers to fund the sheriff’s office at a higher rate because of the elimination of the police. Monticello counters that city taxpayers pay county taxes, and are therefore entitled to countywide services such as the sheriff’s office, fire protection and much more.

The petition seeks for Jasper County to negotiate “in good faith.” The legislature has deemed that the courts cannot settle the dispute, it is up to the county and municipalities to do that.

The county said it will answer the complaint in the coming days.