Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Local Revenue Sources topic
No spam. Unsubscribe anytime.
Local resident outlines Tennessee law change increasing mineral severance tax, urges county interest
Summary
Resident David Seal briefed commissioners on recent state legislation (House Bill 695) raising the mineral severance tax and what that means for county revenue. He said the aggregate industry supported the hike and encouraged county commissioners to consider a local mineral severance tax as a revenue source.
A Jefferson County resident briefed the commission on recent changes at the state level to Tennessee’s mineral severance tax and urged the county to consider the revenue implications.
David Seal said the legislature enacted House Bill 695, which he said raises the mineral severance tax from the historic 15¢ per ton cap to 20¢ per ton this year and to 30¢ per ton by February 1935. (Transcript contains those figures reported by the speaker.) Seal said the bill received support from the Tennessee Road Builders Association, the Tennessee County Highway Officials Association and the aggregate industry itself.
"The aggregate industry supported the increase, and I think that quells any fears that imposing the mineral tax would cause job losses," Seal said, and offered to send commissioners a recording of legislative discussion and other materials. He also expressed support for a local candidate for a commission appointment.
Why it matters: A higher state mineral severance tax could increase county revenues depending on state distribution rules and local extraction activity. Seal argued the industry’s support reduces the risk of a negative local economic impact from the tax change.
Ending: Seal told commissioners he would provide supporting documents and a legislative video; commissioners discussed whether to invite state or industry representatives to a future meeting for further briefings.
