Magnolia sues state, county for trash tax

MAGNOLIA -- Magnolia has filed suit in Pulaski County Circuit Court, seeking a declaratory judgment on whether the city has the right to keep its per-capita portion of the county's 1 percent sales tax for solid waste management.

It names as defendants State Treasurer Dennis Milligan, Columbia County Judge Larry Atkinson and Columbia County Treasurer Selena Blair. All are being sued in their official capacities.

The suit follows months of disagreement about whether Magnolia should receive its portion of the tax collected for solid waste management. Magnolia Mayor Parnell Vann was authorized by the City Council to "pursue" the city's portion of the sales tax, which he said will fund the city's own trash collection program.

Further, the city argues that the county has $8 million in unused solid waste funds sitting in bank accounts.

Vann has said that municipalities in the county have a right to that money because no interlocal agreement is in place between and among the entities. The county eliminated an interlocal agreement in 1998 after it was entered into in 1992 -- the same year Columbia County voters went to the polls to approve the tax for solid waste.

The county has argued that the city has no right to the tax money or to receive its portion of tax collections.

Vann said in a statement: "The City Council and I have concerns about the current [method] of contracting and operating the countywide solid waste disposal system.

"First, millions of tax dollars leave the county through the current solid waste contract, which has just been recommended by the county for renewal. Second, as I initially stated and as the County Treasurer recently confirmed, nearly $8 million sits in a couple of solid waste reserve funds and appear to be doing nothing but accumulating more taxes from citizens. I don't think this is what the taxpayers intended or deserve."

Atkinson issued a statement saying: "It is a shame that the City of Magnolia is willing to sue elected officials for following the law as voted on by the citizens of Columbia County."

State Desk on 09/05/2015

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