Why St. George’s Tax Transfer is Key to Building a New City!
As the countdown to the pivotal vote on December 7 draws near, the stakes couldn’t be higher for the city of St. George. A vote to shift sales tax ownership from East Baton Rouge Parish to St. George is more than just a bureaucratic change; it’s about securing the very foundation of a budding government. Without a favorable outcome, experts warn that the fledgling city’s ability to function could be severely compromised.
In light of this, St. George officials are pushing back against misleading social media claims urging residents to vote no. They label these posts as “disinformation” and a dangerous misrepresentation of the facts.
Supporters of the measure assert that approving it won’t increase local taxes for residents. Instead, it would transfer control of a crucial 2% sales tax currently collected within St. George’s borders—rightfully belonging to the new city—from the city-parish to St. George itself. However, a controversial post circulating on Nextdoor asserts that this move amounts to “taxation without representation.”
St. George Mayor Dustin Yates vehemently refutes this claim, emphasizing that the upcoming vote is, in fact, an opportunity for residents to express their preferences. “It’s absolutely disinformation,” he stated. “If there were no election, then perhaps they’d have a point, but we’re giving citizens the chance to decide.”
It’s worth noting that Mayor Yates and the city council were appointed by the governor back in May. Some critics argue this undermines their legitimacy, but Yates counters that voters are still being granted a voice through this election. “This isn’t a new tax; it’s merely a shift in who gets the funds,” he explained. “Voters are currently paying this tax, and now they have a chance to decide who gets to use it.”
Yates has been transparent with the public from the start. “People have always known that St. George’s government will rely on sales tax revenue. For that to become a reality, we need voters to approve the transfer on December 7,” he insisted.
What’s at Stake If the Vote Fails?
The implications of a failed vote could be dire. Both St. George and city-parish leaders are sounding the alarm on potential disruptions to government services. As it stands, the parish is still providing some essential services while St. George gets on its feet. Current negotiations are focusing on how sales tax revenue collected since July 1 will be allocated to St. George through 2025.
Should voters approve the tax transfer, St. George would be ready to take over service responsibilities effective January 2025. However, if the majority votes no, the essential sales tax revenue that St. George needs to sustain its operations would vanish—leaving the city in a precarious financial situation.
“Under the transition statutes from 2020, if the municipal tax election fails, St. George will struggle to fund its government. The city-parish won’t be able to collect that 2% sales tax either,” noted Julie Baxter Payer, Mayor Broome’s Chief of Staff.
There is a chance St. George could try again to put the tax transfer on the ballot, but the window for the March 2025 election has already closed. This means that if the transfer fails, voters won’t get another shot until May, resulting in a lengthy gap where sales tax collection would halt. This gap could last until September 2025 at the earliest.
The lost revenue represents a staggering 10% of the estimated annual revenue for the city-parish, which could total nearly half a billion dollars over the next decade. Without this funding, St. George will face challenges in providing critical services such as street maintenance and the coroner’s office.
“It’s a nine-month gap,” Yates warned. “This wouldn’t just hurt St. George; it would impact East Baton Rouge Parish too. This affects everyone.”
