Catoosa County sales tax spat going to mediator

Negotiations over how to split millions of dollars in local option sales tax revenue will enter a new phase Tuesday in Catoosa County.

Officials from the two opposing sides — the county and its two incorporated cities, Fort Oglethorpe and Ringgold — will go behind closed doors with a mediator to try to decide how to split 1 cent per dollar in sales tax revenue over the coming decade.

Catoosa County now gets 70 percent of LOST revenue, or roughly $6.65 million annually, while Fort Oglethorpe takes 20.5 percent, or about $1.9 million, and Ringgold gets 9.5 percent, or about $900,000.
The two sides were millions of dollars apart when negotiations began in July.

The cities sought to cut the county’s share to 61 percent and increase Fort Oglethorpe’s take to 26 percent and Ringgold’s to 13 percent. The additional 9 percent for the two cities would add up to almost $9 million over a decade.

Meanwhile, the county sought a larger share for itself: 78.62 percent, with Fort Oglethorpe getting 15.54 percent and Ringgold taking 6.84 percent. At 2011 rates, that would mean an extra $665,000 annually for the county, or $6.65 million over a decade — money the cities would give up.

Read More. (Chattanooga Times Free Press)