Regardless of a decision this week, Forsyth County is facing a months-long gap in its 1-cent sales tax.

In fact, even if an agreement on a new 1-cent sales tax is reached in the next few days -- and Cumming and Forsyth County were still in negotiations Wednesday morning -- it would be at least the fall before the tax could be collected.

Charles Willy, spokesman for the state Department of Revenue said after a Special Purpose Local Option Sales Tax, or SPLOST, is passed, collections can't begin for another 80 days.

Even after the 80-day period, the start date could be pushed back another couple of months, as tax collection must coincide with the beginning of a quarter.

The county is in this position because of a city-initiated lawsuit.

A ruling last week by visiting Superior Court Judge Hugh W. Stone negated a February referendum, in which voters overwhelmingly supported extending the 1-cent tax another five years.

The current tax, known as SPLOST V, is set to expire June 30. SPLOST VI would have begun July 1.

At best, an agreement between the city and county this week could put a SPLOST VII referendum on the July 15 primary ballot.

If passed, the tax collection would be delayed until Oct. 1, which equals a loss of up to nearly $14 million, according to preliminary estimates.

Commissioner Charles Laughinghouse, who has been handling negotiations for the county, has previously said a July 15 referendum is unlikely.

Should the vote be pushed until the Nov. 5 presidential election, and voters approve it, the tax collection couldn't begin until April 1.

The nine-month delay from July until April would equal about $42 million in lost revenue, according to preliminary estimates.

The discussion has not been limited to city and county officials.

District 27 state Sen. Jack Murphy said he has spent several hours on the phone with both parties trying to push for a resolution. Though he said he's not taking sides, "I would like to see an agreement between the city and the county, and for them to keep it out of the hands of the attorneys and courts, which would be costly to both."

"This is a local issue, but it can also affect the state, if projects have to be put off that would generate employment and sales tax revenue," he said. "I don't want to see the county or the city boxed in because of a lack of revenue."

The city and county have been battling over the collection breakdown since September, when the two governments were not able to reach a deal at a required meeting.

The city originally asked for more than 17 percent of the $275 million collection. The county countered with 10 percent. When the city said that amount wasn't acceptable, the county's referendum gave the city only 4.29 percent, based on population.

That was in accordance with state law, which no longer requires governments to agree on a split. And when they can't, municipal shares revert to population.

During meetings this week, Cumming Mayor H. Ford Gravitt said he made offers of 11 percent and 9.98 percent, but "they didn't respond to either one of them, so that's where we are."

E-mail Jennifer Sami at jennifersami@forsythnews.com.

Originally published Thursday, May 8, 2008