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Effingham council weighs 1% local sales tax to cut city property levy and shore up pensions
Summary
City staff and council discussed adopting a 1% local sales tax (and related grocery and amusement tax changes) that staff estimates could generate about $6.53 million annually; council scheduled a formal vote in two weeks after public input.
City of Effingham leaders spent the bulk of their meeting discussing whether to adopt a local 1% sales tax, allow a 1% grocery tax and repeal the city's amusement tax as a package to fund pension obligations and provide property-tax relief.
City Administrator Miller told the council the local 1% sales tax would need an ordinance submitted to the state by Oct. 1 for a Jan. 1 implementation. "We got these numbers from the Department of Revenue. It would generate $6,532,260," Miller said, citing last year's receipts as the basis for…
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