Sumner County, TN, is set to increase its privilege tax on new construction significantly, raising the fee from 70 cents to $1.50 per square foot for residential, commercial, and industrial projects. This decision, made during the General Operations Committee meeting on April 7, 2025, aims to address the financial shortfall in funding for school construction and infrastructure, which has been exacerbated by years of stagnant fees.

The increase is part of a broader effort to modernize the county's inadequate facilities tax, which has not changed since its inception in 1999. Officials noted that the current fee structure has failed to keep pace with inflation and the growing demands on local schools, which have seen an average borrowing of $48 million per year for new construction or expansions from 2014 to 2019, while only generating approximately $2.8 million annually from the existing tax.

The new fee structure will apply to all new construction, with the exception of large industrial projects, defined as those covering at least 1,000 contiguous acres. This change is expected to generate additional revenue that can be reinvested into the community, particularly in educational facilities, which have been underfunded for years.

Committee members expressed concerns about the potential impact of the increased fees on attracting businesses to the area, particularly in the commercial sector. However, the consensus was that the current tax structure was inadequate and needed adjustment to better reflect the costs associated with growth.

As Sumner County moves forward with this new fee structure, officials are hopeful that it will provide much-needed resources to support the county's expanding population and infrastructure needs. The decision marks a significant shift in how the county approaches funding for essential services, aiming to create a more sustainable financial model for the future.