On Dec. 7, St. George voters will decide whether to transfer control of the revenue from the 2% sales tax collected in the new city from East Baton Rouge Parish to St. George’s government.
The tax transfer, according to St. George leaders, would ensure that the sales tax revenue collected in St. George stays in St. George. Without that transfer, St. George would lack the money necessary to fund essential city services on its own.
Andrew Murrell, chair of the St. George Transition District, tells Daily Report that he’s highly confident the measure will pass.
“Why would it not pass?” he asks. “Even if you don’t like St. George, bankrupting yourself and potentially the parish to teach us a lesson seems like a foolhardy expedition. … It’s not going to fail.”
Murrell is careful to note that no new taxes would be levied if the measure passes—at issue is only who controls St. George’s share of the revenue from the 2% sales tax that’s already being collected parishwide.
“This is not a new tax,” he says. “It’s simply transferring the authority … to the city of St. George. If you want your tax dollars at home providing you services, you have to vote yes.”
But what would happen if the measure does fail?
According to Murrell, the city-parish’s authority to collect the tax revenue ceased on April 26 when the Louisiana Supreme Court determined it was reasonable for St. George to incorporate. At that time, the St. George Transition District—the city’s current taxing authority—was created.
If the measure fails, the transition district would continue to serve as St. George’s taxing authority and the city-parish would likely continue to provide the city’s essential services, at least in the short term.
The Dec. 7 ballot item would enable St. George to take control of the tax revenue—somewhere in the ballpark of $48 million per year—on April 1, 2025, regardless of whether an intergovernmental agreement has been reached between the city-parish and St. George.
Baton Rouge Mayor Sharon Weston Broome’s administration and St. George leaders have been stuck at the negotiation table over that agreement for months now, unable to find common ground over how much money the city-parish owes the new city in back taxes.
Murrell says it appears unlikely that an agreement will be reached before the Dec. 7 runoff.
“We had a mediation last week that lasted for several hours, and nothing happened,” he says. “There was no movement. All I’ve heard about is wanting to wait until after the election.”
