Commissioner Clarence Brown signed an ordinance, resolution and intergovernmental agreement regarding the tax, which affects mainly manufacturing companies during an Oct. 10 meeting.
“This is really not a tax increase,” Brown said.
In the long run there will be a four percent reduction in the tax, which in the past taxed at a rate of 6 percent, Brown said.
The 4 percent reduction comes from a measure passed by the General Assembly which rolls back the excise tax paid by manufacturing companies from 6 percent Brown said.
Four percent of the tax, the state’s portion, rolls to zero while the remaining 2 percent is split among counties and their municipalities, he said.
Brown said the tax could help provide revenues to the county’s already tight budget.
It is expected the tax could bring in “hundreds of thousands” Brown said.
County Administrator Steve Bradley echoed that the tax is beneficial to the county.
“It allows us to recoup money that would otherwise be lost,” Bradley said.
Bradley said the decision to authorize the tax comes from a need to continue the services the county provides by stretching and finding revenue sources with declining revenues from property taxes.
“It is very important that we don’t’ lose additional revenue,” Bradley said. “The county can’t afford to take any more hits.”
Attorney Peter Olson said other municipalities in Bartow County must sign an agreement with the county to also receive revenues from the tax.
“Any who choose to participate will participate in it and if any choose not to participate, then their share goes to the rest of the participants,” said Olson.
“So I’m sure all the municipalities will choose to participate.”