published Tuesday, March 1st, 2011

Chattanooga: Councilwoman talks of temporary sales tax agreement

by Cliff Hightower

Chattanooga Councilwoman Deborah Scott today said she would recommend the City Council look at a one-year memorandum of understanding between the city and county on a sales-tax agreement.

But she warned the temporary fix may not be the same as what guided last year’s budget talks, a sales-tax agreement that has been in place for 45 years.

“I think it will look different than last year,” Scott said.

The Chattanooga City Council met this morning for the first of several meetings regarding the 2011-2012 fiscal year budget. It heard a five-year projection of the city’s operating budget from Chief Financial Officer Daisy Madison.

The second half of the meeting centered around Scott giving council members a presentation on the sales tax agreement, which is set to expire in May.

The city stands to gain $10.5 million in revenue from the expiration of the agreement.

Scott said she had three proposals for the council on the agreement: Let it expire, come up with a one-year temporary agreement or rework the existing sales-tax agreement.

Mayor Ron Littlefield, who was in attendance, told the council he approved of the measure.

“I think that’s a good solution, going to a transition phase,” Littlefield said.

For more information, read tomorrow’s edition of the Times Free Press.

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