YERINGTON - After 13 years of giving up part of its tax rate, the City of Yerington will now get some funds back from Lyon County.
An extension of an interlocal agreement stipulates that the county will pay the city $200,000 per year out of consolidated taxes, with the state administering the division.
City Manager Dan Newell explained that from 1968 through 1981, when the Anaconda Mine in Yerington was the main economic force in the county, the city gave up tax rate to Lyon County and received $661,355 of the Table Tax apportionment.
Newell said the city has lost $2,148,717 and the county has gained $64,218,702 as a result of that agreement.
In 1981, the county asked the city to give the rest of Yerington's $0.957 tax rate.
Since the first agreement, cities are no longer allowed to give their tax rate to the county and the state has instituted a mandatory $3.65 tax cap, making it impossible for Yerington to recoup what it lost in those previous agreements.
The proposed agreement would have used ad valorem taxes for the payments, but the commissioners decided to take the $200,000 yearly amount from consolidated taxes.
"We want to get back a portion of what we've given up in our rate," Newell said. "Forty years ago we stepped up to the plate for the whole county."
Commissioner Leroy Goodman said the agreement was a more stable funding source for Yerington.
"We lost potential revenue, as did everyone else, Fernley, Yerington," he said. "But we know as we grow, sales tax revenue will improve."
• Contact reporter Karen Woodmansee at email@example.com or 882-2111 ext. 351.