CLEVELAND (WRWH) — White County voters could have the opportunity in November to approve a local sales tax that officials say will help lower or possibly eliminate your property taxes.
Last November, voters approved House Bill 581, which allows counties to work with local municipalities to hold referendums on a one-cent Floating Local Option Sales Tax (FLOST).
This week, during the White County Commission meeting, commission chair Travis Turner announced that they have been working with the cities of Cleveland and Helen to develop an Intergovernmental Agreement to proceed with a FLOST vote this year.
This November, municipal elections and a statewide election for public service commissioner will create an opportunity for the referendum vote.
Turner said if the voters approve this proposed sales tax, city property owners could see a zero millage rate, and the county could reduce its millage rate by four mills.
Turner pointed out that the reduction would be just for the county portion of the tax bill because the White County Board of Education opted out of this provision.
Assistant White County Manager Shanda Murphy pointed out that 100% of the FLOST revenue must go to lowering property tax and that 60% of sales taxes are paid by tourists coming into the area.
“So basically, the tourists would be helping us pay our property taxes,” Murphy said.
Officials said the county will be providing additional information about the proposed referendum as details are worked out.
