Fulton County and all the cities in it could fall off their own fiscal cliff on Thursday. Atlanta could lose tax revenues that pay for 19 percent of its current year budget.
Atlanta Mayor Kasim Reed told the Atlanta City Council in a special session Wednesday evening that the future is uncertain for a major source of sales tax revenues shared by Fulton County and all its cities. Unless Atlanta signs an existing distribution agreement for the 1 percent local option sales tax, Fulton may not be able to continue to levy the tax, Reed said.
The urgency is arising because Atlanta’s lawyers evidently were unprepared for a ruling last week from the Georgia Supreme Court. In a case out of Turner County, in south Georgia, justices tossed out an arbitration process concerning LOST distribution formulas that Atlanta intended to use to seek a bigger bite of LOST revenues.
