Tennessee Municipal League warns Jackson is losing $1.45 million from state revenue sharing; council adopts supportive resolution

Anthony Haynes, executive director of the Tennessee Municipal League, addressed the Jackson City Council on April 1 and urged support for a resolution asking the state to restore historic revenue sharing with municipalities.

Haynes said Tennessee cities lost roughly $92 million collectively in the current fiscal year because a portion of a sales‑tax increase enacted in 2002 was not returned to cities as had historically occurred. Haynes told the council that Jackson alone was losing about $1.45 million in the current fiscal year as a result of the change.

Haynes framed the request as a taxpayer relief measure that would not raise taxes but would reallocate a portion of existing state collections back to municipalities. He noted the state’s large recurring budget surpluses in recent years and urged phased restoration of the historic sharing practice so cities could use the revenue for local needs such as public safety and other municipal services.

The council voted to adopt a resolution supporting restoration of the historic revenue‑sharing relationship and encouraged residents to contact state legislators.

Quote

"Jackson is losing almost $1,500,000 this fiscal year from the absence of Nashville honoring the shared taxing relationship that exists between Tennessee cities and state government," Haynes said at the meeting. "It's real money that makes a real difference where the boots meet the ground."

Vote

Council adopted the resolution by voice vote; the motion passed as recorded in the meeting minutes.