LETTER | In Response to Mr. Style's Letter about Annexation

In this letter to the editor written by Mr. Robert L. Style, some comments were made regarding Mr. Toby Nixon. We invited Mr. Nixon to write a response and we have posted it here in its entirety. -Admin

By Toby Nixon

It is incorrect to say that the city will “lose out on more than $75,000” by moving the effective date of annexation to June 1 from July 1, 2011. That figure is based on an estimate of monthly sales tax collections in the PAA. If the annexation date is June 1, 2011, then the city will not be able to collect sales tax in the annexation area during June 2011, because sales tax changes can only be implemented by the state Department of Revenue at the beginning of a calendar quarter. But if the effective date of annexation is July 1, 2011, the city will still not receive sales tax revenue for June. There is thus no difference in the amount of sales tax revenue to be collected by moving the effective date up by one month. The city does not collect less revenue by moving the effective date up by a month. The city is not “losing out” on anything.

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