Rutherford County, Tenn. – Following passage of House Bill 695, a pivotal piece of legislation that authorizes counties to incrementally increase mineral severance tax rates on materials such as sand, gravel, sandstone, chert, and limestone, Rutherford County is expected to generate additional revenue to improve infrastructure for citizens.
Rutherford County Commissioner Craig Harris praised the effort behind the bill, recognizing the work of Representative Charlie Baum, Senator Shane Reeves, and industry leaders.
“After years of little progress, I’m glad to have worked with both state, county, and industry leaders to develop a workable, conservative approach to increasing funding for county infrastructure. I’m grateful to Senator Reeves and Representative Baum for their leadership and responsiveness to Rutherford County’s needs,” expressed Harris.
Potential Revenue Increases: With the first authorization to adjust the mineral severance tax rate since 1985, Rutherford County is now capable of increasing revenues from $0.15 per ton to $0.30 per ton over a set number of years. These additional funds are earmarked for the construction, maintenance, and repair of the county’s road system, ensuring improved infrastructure for county residents.
Accountability Measures: Rutherford County will provide annual reports to the Comptroller, Transportation Commissioner, and the legislature detailing the expenditures related to road infrastructure projects, ensuring transparency and accountability in the use of these funds.
Chairman of the Rutherford County Commission, Jeff Phillips, emphasized the significance of this legislation:
“I greatly appreciate members of our State Delegation supporting our efforts for alternative revenues. Commissioner Harris’ efforts to work with industry leaders, our state delegation, and presenting a resolution in support of this effort to the County Commission is a great step forward in how we as a county need to be aligned in tackling the cost of growth,” said Phillips.
“The Rutherford County Commission recognizes that the full cost burden of growth can’t fall on property taxpayers and has made finding alternative revenue sources other than property tax a top priority,” added Commissioner Craig Harris. “By empowering our county to adjust mineral severance tax rates, we are able to secure additional funding dedicated to the construction, maintenance, and repair of county roads without increases to property tax rate.”
SNAPSHOT: In summary, Rutherford County is now allowed to raise the mineral severance tax on materials like sand and gravel, thanks to a new law called House Bill 695. This change means the county can earn more money to help fix and build roads. Commissioner Craig Harris and others worked with lawmakers and industry leaders to make this happen. The extra funds will not come from property taxes, helping to ease the burden on local residents. To ensure honesty, the county will send yearly reports showing how the money is used for road projects.
