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Shelby County jail financing bill rolled after legal questions about tax rate and sunset
Summary
Lawmakers moved House Bill 3 08 to the hill calendar after legal staff identified problems in how the bill’s sales‑tax increase and sunset would operate; sponsors said they will correct language and return the measure to committee.
House Bill 3 08, a Shelby County measure that would authorize a countywide sales‑tax referendum to raise revenue for a new jail, was rolled from the committee calendar after legal counsel advised the bill required correction.
Sponsor Representative Gillespie said the bill would allow Shelby County voters to choose a one‑percent sales tax increase to fund construction of a new jail and pointed to estimates placing construction costs far higher than earlier projections. The sponsor’s statement said the proposal includes a sunset provision tied to debt retirement and would earmark revenue specifically for the jail.
Committee legal counsel advised members that (1) under the local option revenue act (title 67) a county can already pursue an optional local sales tax up to 2.75% via local referendum and (2) the bill’s asylum of amendments led to inconsistent text: as drafted, the bill could produce a permanent net increase in the county sales tax (reverting to 2.75%) rather than returning to the county’s current 2.25% rate. Counsel recommended rescinding one amendment so the bill would leave the committee in proper form or be revised and returned.
Committee members agreed to roll the bill to the hill calendar so sponsors could resolve drafting issues and obtain clarifying information from Shelby County officials. Representative Gillespie asked for time to gather local officials and legal clarification; the chairman granted a roll. The measure therefore did not advance and will return after sponsors correct the drafting concerns.
Lawmakers debated the policy merits of the funding method — sales tax spread across residents and visitors versus property tax burden on homeowners — but the committee paused action to allow technical fixes and additional local input.
