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July 3, 2012

Dalton officials tout tax collections

Charles Oliver charlesoliver@daltoncitizen.com

The city of Dalton’s sales tax collections rose 9.3 percent in the first five months of 2012 compared to the same time last year. That’s almost twice as fast as the overall increase in state sales tax collections in that same period.

Mayor David Pennington says it suggests that Dalton’s lower sales tax rate is helping bring in shoppers and generate sales.

“We are in the county with the highest unemployment in the state of Georgia, the county that has lost more adjusted gross income than any other county in North Georgia over the last five year, but we are beating the state average. What else could it be?” he said.

Dalton Chief Financial Officer Cindy Jackson said the city’s sales tax collections came to $1.156 million in the first five months of 2012, up from $1.057 million in the same period in 2011.

Dalton’s sales tax collections in May came to $225,635, up 5.5 percent from $213,773 in May 2011. But total state sales tax collections rose just 3.9 percent, to $ 449 million, in May compared to last year, according to the Georgia Department of Revenue, and the overall amount of sales tax revenue the state sent back to local counties actually declined 2.1 percent in May compared to last year, to $360.5 million.

Whitfield County’s sales tax dropped to 5 percent — the 4 percent state sales tax and the 1 percent Local Option Sales Tax (LOST) — on Jan. 1 after the local education Special Purpose Local Option Sales Tax (SPLOST) expired at the end of last year.

The sales tax rates in the counties in Georgia that border Whitfield County — Catoosa, Gordon, Murray and Walker — remain at 7 percent, since they still have both an education SPLOST and a SPLOST. And the sales tax rate is 9.25 percent in Hamilton (Chattanooga) and Bradley (Cleveland) counties in Tennessee.

The sales tax rate on groceries is just 1 percent, since the state sales tax doesn’t apply to them.

During Monday’s meeting, council members voted 4-0 to:

• Amend the city’s sign ordinance to allow those denied a sign to appeal that decision to the Dalton-Whitfield Board of Zoning Appeals.

• Approve a $26,010.05 change order for work at the Mack Gaston Community Center for additional outside lighting.

• Approve an amendment to the 2012 budget that, among other items, approves money for the community center change order.

• Approve beer and wine pouring licenses for Ken’s Hibachi Buffet, beer and liquor pouring licenses for The Broken Spoke, and a package wine license for Raspberry Row.

• Approve a resolution supporting the community literacy initiative recently announced by Dalton Public Schools and Whitfield County Schools. That initiative aims to reach young struggling readers and make sure they are reading on or above grade level by third grade.

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