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Committee advances Shelby County sales-tax referendum for new jail after testimony describing overcrowding, lawsuits
Summary
The committee approved a resolution authorizing Shelby County to put a temporary local sales-tax increase to voters to fund a new county jail. Commissioners and Shelby County officials told the panel the existing facility is overcrowded and under frequent litigation, and said the sales‑tax option avoids a property‑tax hike.
The State and Local Government Committee approved a resolution enabling Shelby County to seek voter approval of a temporary local-option sales-tax increase to fund construction of a new county jail.
Under Senate Bill 337, Shelby County would be authorized by state law to adopt, by local resolution and public referendum, a temporary sales-tax increase whose revenue would be dedicated to construction of a new jail or to pay debt service on such a project for a period of eight years or until the debt is repaid.
Shelby County Commissioner Amber Mills, speaking for the county commission, told the committee the current jail — at 201 Poplar Street — is overcrowded and needs replacement. Mills said the county does not want a property-tax increase to pay for a new jail and estimated the tax alternative would better spread costs across both residents and visitors; a property-tax option, she said, would amount to about a 74-cent increase on the county tax rate.
Alicia Lindsey, Shelby County’s chief administrative officer, said the facility was built in 1981 with an annex added in 2002 and that the county has already spent or encumbered roughly $16.5 million just to keep the existing jail functioning. She told the committee that a sales‑tax option would be the most feasible way to finance a new facility and avoid large interest costs the county would face with debt alone.
Committee members probed the policy and logistics of such a referendum and several members urged sensitivity to taxpayers while recognizing the jail’s condition. Senator Kyle, among others, supported giving Shelby County the option, calling the measure a responsible approach for an urgent public-safety infrastructure need.
The committee recorded 7 ayes and 2 no votes; SB 337 was referred to the Senate calendar and the finance committee for follow-up on fiscal details.
Why it matters: Advocates said a new jail is needed for public safety and to resolve ongoing litigation and liability associated with the current facility. Opponents said the measure would raise local sales taxes and asked that all alternatives be carefully considered.
What’s next: SB 337 passed the committee and will be considered on the Senate calendar; finance and local officials will work on fiscal mechanics and the county will need to approve a local resolution and voter referendum in the event of final passage.
