Vote on Tax Transfer Dec. 7

By Woody Jenkins, Editor, St. George Leader – Baton Rouge

In its second official meeting on Monday, July 8, the St. George City Council took an important step toward securing the new city’s financial base by calling a tax transfer election for Saturday, Dec. 7.

The election would authorize the existing 2 percent parish sales tax to be levied by the City of St. George, instead of the parish.  As a result, the city would have a revenue source estimated at $4 million a month. The measure is not a tax increase, and citizens of St. George would pay the same as now.

Introducing the measure, Mayor Dustin Yates said simply, “Not a tax increase!  Not a tax increase! Not a tax increase!”  The mayor said he just wanted everyone to know that they will not pay higher taxes as a result of this tax transfer.

Yates said everyone in East Baton Rouge Parish already pays the 2 percent parishwide sales tax. He explained that in Baker, the tax goes to the City of Baker.  In Central, it goes to the City of Central.  In Zachary, it goes to the City of Zachary, and in Baton Rouge, it goes to the City of Baton Rouge.  “Now here in St. George, the tax will finally go to the City of St. George,” he said.

In response to a question on why the proposition to transfer the sales tax was not being held on Nov. 5 at the same time as the Presidential election when a higher turnout could be expected, the mayor said Dec. 7 was the soonest the election could be held under state law.

After voters in St. George approved incorporation on Oct. 12, 2019, the Metro Council voted to annex several businesses into the City of Baton Rouge. Litigation is pending on whether the boundaries of St. George were locked in at the time of incorporation or whether the Metro Council could legally change those boundaries by moving businesses into Baton Rouge.

During the public hearing on the Dec. 7 election, Robin Clark asked how the purposed annexations would affect the tax transfer election. St. George City Attorney Sheri Morris said the boundaries were fixed at the time of incorporation.  However, she added that everyone pays the parish tax, so the only issue will be where the money goes from any particular business.

To the question of how much the 2 percent sales tax will produce, Mayor Yates said the budget numbers, which predict $4 million a month from the sales tax are a “best guess.”  “We won’t know until it comes in,” he said.

The motion to call the tax transfer election for Dec. 7 passed 5-0 with Council members Patty Cook, Richie Edmonds, Ryan Heck, Max Himmel, and Steve Monachello all voting yes.