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Lawmakers won't share more revenue with cities
Ming, Nolan.jpg
Ming

Tennessee lawmakers won’t be sharing more of the state’s revenue with cities.

Mayors across the state had their fingers crossed for two pieces of proposed legislation that would have allocated more sales tax revenue to their cities.

“The Tennessee State Senate and House adopted a budget and appropriation bill for fiscal year 2022-23,” said city administrator Nolan Ming. “The agreement adopted does not include funding to restore the historic sharing of state sales tax with cities, nor does it alter the single article cap to allow for local governments to realize more local option sales tax revenues.” 

One measure would have restored the 55-year revenue sharing relationship and allowed cities to share in 100% of the state sales tax revenues flowing to the state’s general fund.

Another measure would have allowed local governments to receive their local share of sales tax collected between $1,600 and $3,200 on a single article that is taxed. 

In all, it would have amounted to more than $200,000 in additional tax dollars for the city of McMinnville.

According to McMinnville Mayor Ryle Chastain, those additional funds would have benefited city residents and meant community improvements without further burdening taxpayers.

“City streets, sidewalks, stormwater infrastructure, and parks are but a few things we could spend the money on rather than seeing it go to the state general fund where we have no say or input on how it’s utilized,” Chastain said.

Mayors will have to wait another year to see if similar legislation is presented and gets passed.