February 24, 2005

Legislation Greases Wheels for Wheel-Tax Increases Across Tennessee

Some state legislators in Tennessee are trying to make it harder for citizens to fight back against wheel-tax increases passed by their county government. Legislation currently being pushed in the Tennessee state senate would remove the right of Tennessee residents to use a petition to force a wheel tax increase to a referendum once it has been passed by the county commission.

The legislation also would make it much easier for local governments to raise the wheel tax by requiring only a simple majority instead of the 2/3 majority currently required by state law.

In the extended-entry section of this post I have published the text of the existing law and the text of proposed legislation that would replace it.

The short version is this: Currently, county governments can't pass a wheel tax or wheel tax increase without a two-thirds majority vote of the city council or county commission. And, once such a tax increases passes the citizens of that city or county can gather petitions to force a referendum on the tax increase. In the last two years, citizens in several Tennessee counties have forced such referendums in several Tennessee cities and counties, and wheel tax increases have been defeated in most - though not all - of those referendums.

Voters approved wheel tax increases in Dickson County earlier this year, and also in Carroll County (Jackson). But voters in the last year have rejected wheel tax increases in Williamson, Cheatham, Polk, Lewis, Rhea, Morgan, Hardin and Union counties. Voters passed a wheel tax increase in Knox County, but as Tennessee Tax Revolt makes clear, the Knox County Commission essentially gutted the referendum bypassing a property tax increase contingent upon the failure of the wheel tax, essentially making the referendum meaningless as a mandate on the wheel tax because if you voted for or against the wheel tax, your taxes still went up.

In Blount County last week, a wheel tax increase failed to pass by two thirds vote in the county commission, which voted 12-8 for it. Had the legislation been law, Blount County residents would be hit with a $10 increase in their wheel tax - and no right to force the issue to a referendum.

Now, the Empire is striking back, with legislation designed to lessen the power of citizens over their elected officials. If the legislation passes, county commissions could pass a wheel tax increase by a simple majority and citizens could no longer use a petition drive to force a referendum on it. Only the county commission could call a referendum on a proposed wheel tax increase.

The legislation - Senate Bill 698 - is sponsored by state Sen. Bill Ketron, R-Murfreesboro, and Senate Majority Leader Ron Ramsey, R-Blountville. In the state House, the legislation is sponsored by John Hood, D-Murfreesboro; David Hawk, R-Greenville, Jerome Cochran, R-Elizabethton; Les Winningham, D-Huntsville; Sherry Jones, D-Nashville; and David Davis, R-Johnson City.

In the state Senate, the bill is on the March 1 meeting agenda for the State and Local Government committee. Although Republicans have a 17-16 numerical edge in the state Senate, they don't have control of the body thanks to two turncoat Republicans who voted for a Democrat, John Wilder, to be Lt. Governor last month. Wilder put Democrats in charge of most committees, including the State and Local Government committee. That committee is chaired by state Sen. Steve Cohen of Memphis, a liberal Democrat who can be expected to favor making it easier for local governments to raise taxes. In addition, five of the nine members of the committee are Republicans - but two of them happen to be Ketron and Ramsey, sponsors of this very bad legislation.

So, the bill likely will survive the committee. Whether it passes in the full Senate or in the state House remains to be seen. My guess is, if the legislation gets sufficient publicity, it will die rapidly.

Unforutnately, the Tennessee news media has, so far, ignored this potential news story brewing at the state legislature. They shouldn't. Perhaps one of the local Nashville reporters, editors and news producers who I know read my blog regularly will decide to cover it. It's an easy story to cover. I've laid out the background data above, and certainly the newspapers and teevee news channels have file photos or video of things like recent tax protests and wheel-tax referendum petition drives. All they need do now is to send out a reporter or a camera crew and do "man on the street" interviews, asking regular folks if they think the state legislature ought to make it easier for their county commission to raise wheel taxes, and harder for the people to stop them.

Another question that needs answered: Why does Ramsey, a self-styled conservative Republican who lost his chance to become Lt. Governor because two of his fellow Republican state senators chose instead to vote for Democrat John Wilder for that position - want county commissions to be able to more easily raise taxes on his constituents and on all Tennesseans - and why does he want the people of Tennessee to have less power to stop tax increases?

The text of the current law and proposed legislation follows...

Here is the section of the Tennessee Code which would be deleted by the legislation, followed by the language that would replace it if the legislation passes.

Sec. 5-8-102(c):
(c) Motor Vehicle Tax - Imposition.
(1) No resolution authorizing such motor vehicle privilege tax shall take effect unless it is approved by a two-thirds (2/3) vote of the county legislative body at two (2) consecutive, regularly scheduled meetings or unless it is approved by a majority of the number of qualified voters of the county voting in an election on the question of whether or not the tax should be levied.

(2) (A) Except as provided in subdivision (c)(2)(B), if there is a petition of registered voters amounting to ten percent (10%) of the votes cast in the county in the last gubernatorial election which is filed with the county election commission within thirty (30) days of final approval of such resolution by the county legislative body, then the county election commission shall call an election on the question of whether or not the tax should be levied in accordance with the provisions of this section.

(B) In any county having a population of not less than eight hundred twenty-five thousand (825,000) nor more than eight hundred thirty thousand (830,000) according to the 1990 federal census or any subsequent federal census, if there is a petition of ten percent (10%) of the qualified voters who voted in the county in the last gubernatorial election which is filed with the county election commission within thirty (30) days of final approval of such resolution by the county legislative body, then the county election commission shall call an election on the question of whether or not the tax should be levied in accordance with the provisions of this section.

(3) The local governing body shall direct the county election commission to call such election to be held in a regular election or in a special election for the purpose of approving or rejecting such tax levy.

Replacement Language:
(c) The county legislative body shall choose one (1) of the two (2) following options for authorizing such motor vehicle privilege tax:

(1) The county legislative body shall authorize such tax by adopting a resolution by majority vote of the members who are entitled to vote at two (2) consecutive regularly scheduled meetings of the county legislative body; or

(2)(A) The county legislative body shall direct the county election commission to call an election to be held in a regular election or in a special election for the purpose of approving or rejecting such tax levy.