JACKSON Tenn (June 27, 2017) – The Madison County budget committee met on
Monday to discuss raising the property tax and implementing a wheel tax.
The county budget committee discussed possible taxation options. Right now
they are considering a combination of a $75 dollar wheel tax and a .42 cent
property tax increase. The county is looking to replace the estimated $12
million tax dollars the city is now keeping.
Based on current estimates 70,000 taxable vehicles at $75 would raise
$5,250,000 annually, and at a rate of $207,454 per penny taxed the .42 cent
property tax would add and additional $8,713,068.
Budget committee chairman Doug Stephenson said the last that he or the
other commissioners want to do is raise property tax. Stephenson said the
county is facing a shortfall created by the city’s decision to keep their
share of the local purpose tax fund the revenue has to be corrected.
Asked if the county would pledge to rescind the taxes if the county is
successful in its lawsuit, Stephenson said he is only one vote but he would
be in favor of it if that is what the other commissioners agreed to do.
However, there are other options that would not include a tax increase on
local residents.
A “hamburger tax” levied on fast food, increasing the hotel-motel tax,
or a technology tax are all options that would be shared by residents,
commuters, and travelers. Such a tax would shift the total burden from
being only on local residents.
The city will keep its share of the local purpose taxes collected for now
but if the county wins its lawsuit the money will have to be refunded.
County officials have said they have only days to approve a budget but
state law does allow them to operate on a continuation budget until at
least August 31.
Commissioner Gerry Neese said, “It’s time to talk…time for the two sides
to talk and stop this senseless disagreement.”
The county commission will meet Friday to consider and possibly approve
the new taxes or vote for a continuation budget. The meeting is 8:30 am at
the Jackson-Madison County Health Department.
