Sales tax hike OK'd on 2nd vote
Tuesday, January 12, 2016 12:28 pm
Cannon County Commissioners passed on second reading a resolution calling for an one cent sales tax hike.
"You have voted on this already," County Executive Mike Gannon told the commissioners during the brief meeting. "One-half goes to the school system and one-half goes to the county general budget."
Cannon County voters have the final say on the sales tax hike during the March 1 presidential primary election.
Cannon County's sales tax currently stands at 1.75 cents. The increase would put the tax at 2.75. Surrounding counties of Rutherford, Warren and DeKalb already have the 2.75 rate.
"It won't bring in a lot of money, but it does help spread the cost across all of the public," Gannon said.
Generally, Cannon County government is financed by property taxes.
"For your information, the sales tax brought in 77,343 last year," said Budget Chairman Mark Barker. "I move that we adopt this."
Commissioner Jim Bush seconded the motion which passed 7-2 during a voice vote. Voting "no" were Commissioners Russell Reed and Brent Bush. Commissioner Todd Hollandsworth was absent.
Voting "yes" were Commissioners Barker, Karen Ashford, Jamie Holloway, Jim Bush, Glenn Steakley, Richie Hunter and Adam Melton.
Resolution 2016-1 is divided into six sections and reads:
"Be it resolved by the county legislative body of Cannon County, Tennessee:
SECTION 1: The resolution of the county legislative body of Cannon County, Tennessee. imposing a local sales and use tax as authorized under the provisions of Tennessee Code Annotated, Section
67-6-701 through 67-6-712, adopted by the county legislative body at a special meeting of record in Minute Book_, page __ , is amended to levy a local sales and use tax at a rate of
2.75%, not to exceed the maximum percentage as stated in the RETAILERS TAX ACT,
Tennessee Code Annotated, Section 67-6-702, as amended, except as limited or modified by statute.
SECTION 2: If a majority of those voting in the election required by Tennessee Code Annotated, Section 67-6-706, vote for the increase in the tax imposed by this resolution, collection of the increased tax levied by this resolution shall begin on the first day of the month occurring thirty (30) or more days after the county election commission makes its official canvass of the election returns.
SECTION 3: The Department of Revenue of the State of Tennessee shall collect the additional tax imposed by this Resolution concurrent with the collection of the state tax and the local tax now being collected for Cannon County, in accordance with rules and regulations promulgated by the Department.
SECTION 4: The County Executive is hereby authorized to contract with the Department of Revenue for the collection of the additional tax imposed. by this Resolution, and to provide in the contract that the department may deduct from the tax collected a reasonable amount or percentage to cover the expense of the administration and collection of the tax.
SECTION 5: In the event the tax is collected by the Department of Revenue, suits for the recovery of any tax illegally assessed or collected shall be brought against the state Commissioner of Revenue and the County Executive.
SECTION 6: A certified copy of this Resolution shall be transmitted to the Department of Revenue by the County Clerk forthwith and shall be published one time in a newspaper of general circulation in Cannon County prior to the election called for in Section 2 hereof