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add a local option sales tax to generate revenue and decrease the amount of funding needed through property taxes – into law through two options: a Floating Local Option Sales Tax (FLOST) or a Local Homestead Option Sales Tax (LHOST).
The largest difference between the taxes is their beneficiaries, as FLOST benefits all property owners – whether it be residential, commercial, industrial, and agricultural properties – while LHOST primarily benefits owner-occupied residences, otherwise known as homesteads.
“LHOST is distributed proportionally among the county and participating cities based on their actual homestead digest,” County Manager Heather Scott explained. “Then, the excess proceeds are used to reduce millage rates across the board for all property owners. So, it starts with homestead properties, and then if there’s any extra, it then reduces the millage rate across the board.”
Also, unlike FLOST funding, which is distributed to the county and cities based on a percentage, the amount of funding distributed through LHOST is specified within the legislation. “It’s not like if you do FLOST, where [the cities] will get a bigger percentage. With LHOST, we get the majority of the percentage because of [it being based on] homesteading property,” Commissioner Leland Adams added.
After a period of discussion, the commissioners agreed that they felt LHOST was the best option for the County.
“I know a lot of times, citizens get alarmed any time we start talking about adding new taxes because no one wants to be taxed. I’m anti-tax all the way. But we know at the end of the day, counties have core services – Sheriff’s Departments, EMS, fire, all of the things that we want to be able to rely on – that must be funded some type of way,” Commissioner Amie Vassey commented. “This is the state’s effort to slowly start moving us away from a property tax revenue model and slowly inch towards a sales tax revenue model to be able to fund our County. It’s baby steps – it’s not going to happen overnight, but this is the first step.”
She continued, “I have had citizens reach out to me and tell me not to pass any kind of tax, but we really need to understand what it is we’re doing. We are trying to get away from property taxes, which is what we all want, so I do support LHOST.”
Commission Chairwoman Ginger Morris also spoke on the decision. “Sales tax is the fairest tax. Everyone who comes to the County, who spends any kind of money from any other county, who gets something from Amazon or Walmart and has it shipped to their house or anywhere in the County – we get sales tax off of it,” she remarked. The commissioners unanimously agreed to have State Representative Leesa Hagan to work to get the General Assembly to create a local act during the General Assembly’s Special Session on Wednesday, June 17. If the local act is created, Citizens will then be able to vote on whether or not they wish to enact the tax in the County during a referendum vote that will occur as a part of the General Election in November.
Other Action Items New RFP The commissioners agreed to publish a new request for proposals (RFP) for two motor graders and a trade-in value for the County’s current motor grader. Previously, the commissioners had accepted a bid from John Deere for the equipment; yet, because of a mistake by the salesman, the price of the machinery was incorrect, as it was much higher than agreed upon. After reviewing the language of the bid and consulting with the county attorney, the commissioners agreed to accept bids again on the equipment with the understanding that bids may be amended if an issue arises.
Contract Renewals
Commissioners renewed the contracts with the Department of Corrections for inmate detail crews, the Department of Family and Children Services, and Middle Flint Meals for Seniors.
The inmate detail contract increased in price by 5%, bringing the total cost of the contract from $54,249.80 previously to $56,952.29 currently. This change comes from the increase in price of inmate detail correctional officers’ salaries.
The Department of Family and Children Services contract did not change at all from the previous year, as it only costs the County $4,999.00, and the remainder of the funding for the office comes from the state government.
The Middle Flint Meals for Seniors contract was also renewed to continue to provide meals for senior citizens within the County. According to the contract, meals for the 28-30 homebound senior citizens within the County cost $5.10 each, while the meals for the 25-30 senior citizens who come to the Montgomery County Senior Center each day to eat cost $4.95 each. This new contract will begin on July 26 and will fund the program through June 30, 2027. Board Appointments
Paramedic Jonathan Holland was selected to continue to represent the County on the Region 5 EMS Board, as he has already been serving on the Board. This decision was passed on a 4-0 decision, as Commissioner Jimmy “Pedro” Sharpe abstained from voting. Montgomery County Emergency Management Agency (EMA) Director Tristan Willis also applied and was considered for the position.
Commissioners agreed that Donna Kay McDonald should continue serving on the Department of Family and Children Services Board in the County. McDonald was the only applicant for the position.
Next Meeting
The next work session of the Montgomery County Board of Commissioners will be Thursday, July 9, at 5:30 p.m. The Commissioners’ next meeting is slated for Monday, July 13, at 5:30 p.m. Both the work session and the meeting will be held at the Montgomery County Government Annex, located at 251 S. Richardson Street in Mount Vernon.
