Rhea County workshop schedules severance-tax resolution to fund highways

Unidentified Speaker 1 opened discussion of a proposed resolution authorizing Rhea County to levy a severance tax on earth, sand, gravel, sandstone, chert and limestone within the county, saying the measure would levy $0.20 per ton for the tax period beginning July 1, 2025.

The resolution language was read by the speaker, who said the proposal is not new and "we would have had a severance tax on minerals for quite some time." Unidentified Speaker 2 told the workshop the revenue from the levy would be earmarked for the highway department and explained that the resolution "actually does is stay in the 5% increase in the lead" and that the county needed to pass the measure to levy that additional 5%.

Why it matters: The proposed levy would create a standing revenue stream for road and highway work in Rhea County by taxing extraction of locally occurring mineral commodities. County staff framed the action as routine—"This is not something that is new. This is something we do periodically"—but the fiscal effect is identifiable: the draft resolution specifies a levy of $0.20 per ton starting 07/01/2025.

What happened at the workshop: Commissioners agreed to place the severance-tax resolution on the commission agenda for formal consideration. The workshop did not record a formal vote or a final adoption; staff will return the resolution to the commission for further action.

Next steps: The item is scheduled for the commission agenda so the board can consider formal adoption, possible amendments, and any implementing language that would direct proceeds to the highway department.