Budget Committee green-lights $75 wheel tax, property tax hike

JACKSON, Tenn. — Prepare to pay more in taxes if you live in Madison County. County commissioners blame the potential increase on the City of Jackson.

The Madison County Budget Committee approved a 42-cent property tax increase Tuesday, which commissioners said is about a 20 percent increase over the current rate.

“We’re not raising taxes because we choose to,” Madison County Commission Chairman Gary Deaton said. “We’re raising taxes because we’re forced to by the action of the city.”

The Budget Committee also agreed to implement a $75 wheel tax per vehicle, which commissioners said would likely take effect Sept. 1. “It’s just sad that we are where we are today,” Madison County Mayor Jimmy Harris said.

County leaders blamed the City of Jackson. City Council members voted in May to keep about $12 million a year in tax money that has gone to the Jackson-Madison County School System since 1989.

Madison County Budget Committee Chairman Doug Stephenson said state law requires the county to continue to fund the district. “In some shape or form, we have to come up with this money to be able to take care of the schools,” Stephenson said.

Commissioners said the property tax increase and wheel tax should bring in about $12.4 million a year.

If approved, Deaton said this will be the first property tax rate increase in Madison County since 1992. “We have to balance a budget by June 30,” Deaton said. “Have no other choice but to take this action.”

The Madison County Commission is scheduled to vote Friday on the tax increases.

If the county wins its lawsuit against the city, commissioners said they can rescind these tax increases.