UPSON CO/CITY THOMASTON/CITY YATESVILLE LOST DISTRIBUTION CRITERIA

 DETERMINING LOST DISTRIBUTION

The law does not specify a formula for distributing LOST proceeds. Instead, it outlines eight factors that can be used

by local governments in negotiating the LOST distribution.

 

The Eight Criteria for LOST Distribution

According to O.C.G.A. § 48-8-89, the distribution of proceeds of the tax as specified in the certificate shall be based

upon, but not be limited to, the following criteria:

(1) The service delivery responsibilities of each political subdivision to the population served by

the political jurisdiction and served during normal business hours, conventions, trade shows,

athletic events and the inherent value to a community of a central business district and the

unincorporated areas of the county and the obligation of all residents of the county for the

maintenance and prosperity of the central business district and the unincorporated areas of

the county;

(2) The service delivery responsibilities of each political subdivision to the resident population

of the subdivision;

(3) The existing service delivery responsibility of each political subdivision;

(4) The effect of a change in sales tax distribution on the ability of each political subdivision to

meet its short-term and long-term debt;

(5) The point of sale and use which generates the tax to be apportioned

(6) The existence of intergovernmental agreements among and between the political

subdivisions;

(7) The use by any political subdivision of property taxes and other revenues from some

taxpayers to subsidize the cost of services provided to other taxpayers of the levying

subdivision; and

(8) Any coordinated plan of county and municipal service delivery and financing.

 

The law does not provide specific information about how to calculate each of these eight factors.

Also absent from the law is a ranking of the criteria by degree of importance, although the law does

expressly state that population is not intended to be more heavily weighted as a criterion. In some

cases, reliable data may not be available, which makes the negotiation of distributions more difficult.

With little guidance from state law, cities and counties around the state have developed a variety of

techniques and methodologies which may be used as a starting point for the 2022 renegotiations.