Judge rules in favor of Dunwoody over HOST sales tax money - AJC

Judge's Decision

Judge rules in favor of Dunwoody
DeKalb County ordered to share sales tax money

By April Hunt for the AJC
Tuesday, March 17, 2009

DeKalb County must share sales tax revenue with the new city of Dunwoody, a judge has ruled.

Fulton County Superior Court judge Jerry Baxter denied DeKalb’s request for an injunction against state enforcement of a 2007 law that requires the county to distribute part of its 1 percent sales tax to Dunwoody.

The ruling means that $1.6 million the county had been distributing yearly to the Perimeter area’s self-taxing business district now will go to Dunwoody. Whether the city will end up turning the money over to the district, for improvements such as roads, has yet to be decided.

“We did not expect this to be resolved this quickly, so it hasn’t even been discussed yet,” Councilman Tom Taylor said of how the city will spend the money.

DeKalb can appeal the ruling. Spokeswoman Kristie Swink said Monday the county was “reviewing its options.”

DeKalb is still involved in a legal struggle with many of its other cities over the distribution formula for the homestead option sales tax, or HOST. That case has dragged on for more than eight years.