ST. GEORGE — St. George's leadership suggested Thursday that the city-parish government transfer $17 million to the new city by next July 1 for its share of tax collections in the southeastern part of East Baton Rouge Parish.

According to the proposal, $1.25 million monthly in tax revenue dating to July 2024 and continuing through the end of the year will be earmarked for payment to the new city. From Jan. 1 to May 31, 2025, St. George will receive $1.5 million per month, and the amount would increase to $2 million for June 2025.

St. George said it would waive its claim for revenue collected from April 2024 through June 2024. The state Supreme Court approved the new city's incorporation in April.

The proposed plan says that, by next July 1, the new city will assume all responsibilities for services previously provided by the city-parish, except animal control. 

The City of St. George City Council, the St. George Transition District and the East Baton Rouge Metropolitan Council must approve the agreement before it would retroactively take effect on April 26.

St. George Mayor Dustin Yates said the proposed financial agreement would not settle a dispute over when the new city was created. The new city has maintained that St. George has a right to claim assets that date as far back as the October 2019 election approving the city’s incorporation. 

“We are not conceding anything. The actual incorporation date has nothing to do with this agreement. This agreement only pertains to tax dollars post-Supreme Court decision,” Yates said in a text to WBRZ.

In August, St. George Transition District members pursued legal action against East Baton Rouge Parish to settle a dispute the city-parish had over the transfer of the sales tax revenue.

St. George is the fifth-largest city in Louisiana with over 86,000 residents. After the October 2019 vote, East Baton Rouge Parish leaders unsuccessfully fought its creation.