Land transfer tax could mean more revenue for county
CARLA GWALTNEY OWENS Sentinel Writer

Clay County Commissioners said Thursday that they must raise additional revenue for the county to cover expenses that they will begin to incur on Oct. 1 when the state starts taking part of the county's revenue to cover Medicaid costs.

County Manager Paul Leek told commissioners that the county will have to findsome way to offset this loss in some way. Leek said that because the state is taking away revenue from counties they have given them the option of adopting a land transfer tax or a ¼ cent sales tax increase.

Commissioners said that they are considering the option of a land transfer tax because it would create the most revenue for the county which is in desperate need of money to cover many capital projects including a new school and extensive improvements and expansion to the current water and sewer system.

Commissioners said that preliminary figures show that a ¼ cent sales tax increase would produce an additional $300,000 on average each year, where as a land transfer tax would produce in the neighborhood of $900,000 each year.

These figures are based on previous sales tax and land sale records and are an estimate.

A land transfer tax, which commissioners said would be their likely preference, would have to be placed on a ballot after a 60-day public comment period. Commissioners added that revenue produced by a land transfer tax would likely be split three ways between a new school, the water and sewer needs, and other capital projects in the county.

Commissioner Doc Sellers commented that the state is taking

away revenue from the county and not providing revenue for desperately need capital improvement projects like a new school and expansion of the water and sewer system. "These are the options we are left with to raise the money we need," Sellers commented of approving a land transfer tax.

We are overloaded now at the school and we owe it to our youth to have a place they can go to school in."

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