Netts presents sales tax option


Palm Coast Mayor Jon Netts presented a sales tax option at Tuesday's workshop. "The ball is in their court," Netts said, of the County Commission.
Palm Coast Mayor Jon Netts presented a sales tax option at Tuesday's workshop. "The ball is in their court," Netts said, of the County Commission.
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Palm Coast Mayor Jon Netts presented a plan Tuesday that he hopes could solve the debate of the countywide half-cent sales tax.

Netts said that he has heard in the community that Palm Coast is the holdup as county officials continue to decide how to fund jail expansion and other county necessities. And so, he has a plan.

The plan would be for the County Commission to enact the small county half-cent sales for 10 (or more) years. In the first three years, the revenue would be distributed according to the state default formula, in which the city gets 50% of the revenue, unicorporated Flagler County gets 45% and the other cities get 5%.

Then, each of the next four years, the city’s share increases by 25% of the difference between the default distribution and the current interlocal distribution.

The final three (or more) years would revert back to the current interlocal agreement, in which the city gets about 65%, the county gets 29% and the other cities get 6%.

Earlier this year, County Commission Chairwoman Barbara Revels proposed that the tax could be extended for 15 years with a phase-in process over a six-year period. The distribution would stay the same for the first year, but by the end of the sixth year — assuming the total revenues remain the same — Palm Coast would get less money.

Netts’ plan is essentially the opposite of that and falls in line with the population of Palm Coast compared to unincorporated Flagler County and the other municipalities. (Palm Coast makes up for about 79% of Flagler County’s population.)

On July 31, the County Commission agreed not to put the renewal of the 22-year-old half-penny sales tax on November’s general election ballot. The tax will expire Dec. 31.

The County Commission could impose a small-county half-cent sales tax with a supermajority vote if four of the five County Commissioners approve it.

“What this does is it provides for more money up front for the county, but moves over time toward the distribution that represents a blend — a midpoint — between the two extremes,” Netts said.

The City Council agreed to send Netts’ concept to the County Commission.

“My concern is ... we’ve been told we’re the hold up, we’re the problem,” Netts said. “(Now) the ball is in their court.”

 

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