Mayor: Brand-new agreement needed on city/county sales tax

Mayor: Brand-new agreement needed on city/county sales tax

February 8th, 2011 by Cliff Hightower in Local - Breaking News

Mayor Ron Littlefield said today he would rather the sales tax agreement between the city and county run out.

"I will not recommend we renew it," he said.

The City Council met today in a two-hour budget session and talked extensively about the sales tax agreement. If the agreement runs out as expected on July 1, it would mean an additional $10.5 million for Chattanooga's and surrounding municipalities' coffers, officials said.

Their gain, however, is Hamilton County's loss.

Littlefield said today the time is for the cities and the county to negotiate a brand-new agreement.

For complete details, see tomorrow's edition of the Times Free Press.