The judge who will decide how millions of dollars in sales tax money is divided has set Feb. 8 as the date for Effingham County and the cities of Rincon and Springfield to submit their offers.
Senior Superior Court Judge Albert Rahn III said in an order filed Dec. 28 that the entities should submit their “best and final offer” for distributing the local-option sales tax, or LOST, by Feb. 8, along with a brief outlining their reasons.
He said a trial in the matter will be held March 28 and March 29. He also said he will make a ruling in the case by April 30.
The parties are going to court because they have been unable to reach an agreement on their own or with a mediator.
State law calls for the judge to use “baseball arbitration,” choosing one of the three offers without modification. The judge’s decision will be binding.
Distribution of the 1-cent-per-dollar sales tax is renegotiated every decade, based on Census data.
The debate is an important one, determining the fate of about $8.4 million a year countywide.
Rincon Interim City Manager Wesley Corbitt has said how the money is divided could impact whether the city is able to continue rolling back all of its property tax millage, so that residents don’t pay property tax.
Guyton has been working “hand-in-hand” with Rincon throughout the negotiating process, said Guyton Attorney Ray Smith. He said it’s likely that Guyton will remain in that relationship with Rincon as the court process continues.
Rahn also set Jan. 24 as the date for a preliminary settlement conference, “location to be determined.” “Each party shall designate representatives with full settlement authority to attend the preliminary settlement conference,” the judge said.
A final settlement conference is set for March 1. While the issue is being decided, the parties will collect taxes based on the previous formula, which gives Effingham County 77.50 percent; Rincon 13.84 percent; Springfield 5.76 percent; and Guyton 2.90 percent.