Sen. Butterworth Helps Ensure Local Counties Continue to Receive Unidentifiable Sales Tax Proceeds

ATLANTA (April 17, 2009) – Sen. Jim Butterworth (R-Demorest) provided a guarantee that local governments in the 50th Senate District will continue to receive their share of unidentifiable sales tax proceeds with the passage of House Bill 181, which he helped to move through the Senate. This legislation reinstates the sunset date on the authority of the Department of Revenue (DOR) to return these funds to local governments, which was set to expire on June 30 and will become law upon the Governor’s signature.

“This legislation will help prevent local governments from having to raise taxes on citizens by ensuring that they continue to receive these important funds,” said Butterworth. “Last year, these proceeds totaled about $18 million that was appropriated to local governments, which use the money to fund important projects in their communities.”

While processing sales tax proceeds due to the state and local governments, DOR often encounters returns that cannot be processed. In 1998, the legislature granted DOR the authority to disburse these tax proceeds with a pro rata allocation to the respective governments, which ensured that the local taxing jurisdictions received the proceeds of a tax that local voters agreed to levy. Without this authority, the state simply held the funds.

Since the implementation of the pro rata allocation in 1998, $4.6 million has been distributed to Banks, Franklin, Habersham, Hart, Rabun, Stephens, Towns and White counties. Butterworth noted that counties need these funds now more than ever as local governments face declining revenues in a downward economy.

Sen. Jim Butterworth represents the 50th Senate District which includes Towns, Rabun, Habersham, Stephens, Banks, Franklin, and Hart counties along with a portion of White County. He can be reached by phone at 404.463.5257 or by email at jim.butterworth@senate.ga.gov.

PRESS RELEASE
For Immediate Release:
April 17, 2009
For Information Contact:
Raegan Weber, Director
Kallarin Richards, Senior Communications Specialist
kallarin.richards@senate.ga.gov
404.656.0028