Published: March 19, 2008 11:23 pm            

Downtown says no to tax cut

The board of the Downtown Dalton Development Authority rejected 4-2 on Wednesday a move to abolish the agency’s property tax. But members said they will look for ways to cut the tax the DDDA charges to those who own property downtown.

The DDDA currently charges a rate of 3 mills. That raises about $180,000, which the board uses to promote and develop the downtown business area.

Board members Dick Lowrey and Lamar Pierce voted to abolish the tax. Board members Kellie Smith, Gary Brown, J.T. Finley and Ben Laughter voted against the proposal.

The vote came after Mayor David Pennington spoke to the group and reiterated his desire that the board abolish the DDDA tax.

“It is only 18 percent less than the city’s millage rate, which is itself too high,” said Pennington.

Pennington called the higher taxes that downtown businesses must pay compared to other parts of the city or the county a “disincentive” to development.

“If we don’t at least put the downtown on an equal footing with the rest of the city, it’s going to continue to deteriorate,” he said.

But some board members took issue with Pennington’s argument that the DDDA tax is a major deterrent to attracting firms to downtown.

“I moved into downtown from the county. That was my choice. I knew I was going to pay more. I wanted to pay more because I knew what was going to be happening downtown,” said Smith, owner of The Pickity Place.

She said that for a retailer, the concentration of people and businesses downtown makes it an attractive place to do business.

“Most downtown business owners and property owners don’t feel that way,” Pennington said.

Board member Laughter disagreed with that claim. He said he’d talked to a number of property owners downtown and he said “the vote was 3-1 for leaving things the way they are.”

Board members also asked how much money the City Council would be willing to provide the DDDA if it abolished the tax.

“It depends on what is asked for,” Pennington said.

But Pennington said downtown is a top priority for him and the rest of the City Council.

“The city just spent $7.1 million, by their math, on Streetscape. For someone to spend that kind of money and abandon their investment doesn’t make a lot of sense,” he said.

Board members said they will look for ways to reduce their tax rate, and DDDA executive director Sarah Harrison said the board has planned to reduce its tax rate to 2 mills as soon as possible since it first raised it to 3 mills in 2005. Harrison said they hoped to do that when the board sets its tax rate this year.

“We want to do our part, but we’ve got to have our funds,” said board member Finley.

Board members said they wanted to set up a meeting with the full City Council to discuss ways they can work together to benefit downtown.



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The Downtown Dalton Development Authority will host an outdoor downtown party with a live band on Friday, April 25, from 7:30 to 10 p.m.

The DDDA will also bring back its classic car Cruise-Ins on the second Saturday of each month from April to October, from 5 to 10 p.m.

On Thursday, April 24, the DDDA will host a downtown sampler from 7 to 10 p.m., with downtown restaurants providing samples to patrons who purchase tickets to the event.

And the DDDA will kick off a farmer’s market on May 10. It will be held every second and fourth Saturday of the month through October.

        

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