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Carter County commissioners adopt higher mineral severance tax rate permitted by new state law
Summary
The commission adopted a resolution to raise the countymineral severance tax to the maximum allowed under recent state legislation (Public Chapter 285), effective with the tax period beginning July 1, 2025.
Carter County commissioners on May 19 adopted a resolution increasing the county mineral severance tax to the maximum rates now permitted under recent state legislation (Public Chapter 285), with new rates effective for the tax period beginning July 1, 2025.
The resolution cites a private act from 1981 and amendments enacted by the Tennessee General Assembly and signed as Public Chapter 285 on April 24, 2025. The countylegislative body approved increasing the per‑ton severance rate to the cap allowed by the statute for the 2025–2030 period and authorized the presiding officer to deliver a certified copy of the resolution to the Tennessee Department of Revenue.
Why it matters: commissioners and budget committee members said the change may increase local revenues tied to mining and aggregate extraction, and could prompt greater compliance from local operators. The county attorney noted enforcement options are limited by the old private act language (for example, some prescribed fines are dated) and said collection efforts would rely on available administrative and legal remedies, including civil collection if businesses failed to remit the tax.
The budget committee recommended adoption after reviewing the statutory changes. Commissioners discussed how the county clerkhandled past remittances and the practical steps for notifying and collecting from local mineral producers.
