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Commission reviews state law change and proposal to raise mineral severance fee from 15¢ to 20¢ per load
Summary
Staff explained a recent Tennessee law lets counties increase mineral severance amounts; commission discussed a proposed increase from 15¢ to 20¢ per load with revenue earmarked for the highways department; no vote was taken at the workshop.
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County staff briefed the commission on a recent state law change that allows counties to increase the mineral severance tax that counties receive. Under the county’s current setting, the severance amount is 15¢ per load; staff presented a proposal to increase it to 20¢ per load.
A commissioner asked how the tax works and staff explained the general severance process and that the incremental revenue would be directed to the highways department. Commissioners noted other counties are likely to adopt similar increases under the new law and that the county can revisit the rate periodically.
No formal vote was recorded at the workshop; staff indicated the change would require a formal resolution or ordinance consistent with state law before taking effect.
