City will hear report on impact of local option sales tax

A report on the impact of the recently-passed local option sales tax highlights today's light agenda for Gaffney City Council.

Former Municipal Association of South Carolina Director Howard Duvall, who now serves as a consultant for the organization, will deliver the report.

In past discussions about the sales tax, it was estimated the city could realize as much as $460,000 in sales tax revenue this year.

But city officials have cautioned those totals are likely inflated since collection problems are common during the initial year of the tax. With that in mind, city officials expect the sales tax to generate only $150,000 to $200,000 this year.

According to state law, 71 percent of the money generated by the sales tax will go to reduce local governments' portion of homeowner property taxes.

The city will likely use its share for capital expenditures, including police cruisers and future stormwater projects. The city also is consider earmarking a portion of the funds to increase entry level salaries for the city's police and firefighters.

Merchants will begin collecting the tax in May. Groceries will not be exempt, city officials have said.

Council members will also receive a report from city administrator James Taylor concerning stormwater management policies.

The meeting will begin at 7 p.m. at city hall.