Mediation is the next step in the once-a-decade chore of establishing a formula for deciding how local option sales tax (LOST) revenue will be divided between the county and its cities.
Hiring a mediator will be necessary, because the county and three of its four cities – LaFayette, Rossville and Lookout Mountain – cannot agree on equitably sharing roughly $5.5 million annually.
Dividing an amount so great is not as simple as deciding how to share a box of Girl Scout cookies or slice a cake. The amounts in question are substantial and whatever formula is decided on regarding how to share LOST will be in place for the next 10 years.
Unlike other optional sales taxes citizens impose on themselves, the revenue from LOST can be used for general operations, not just capital projects. The current LOST is projected to generate a total of about $54 million over 10 years.
“Chickamauga was happy with an 80/20 split and the others asked for 55/45,” County Attorney Don Oliver said during a called meeting Aug. 27.