Madison Co. Budget Committee OKs property tax increase, drops wheel tax

MADISON COUNTY, Tenn. — The county Budget Committee met Wednesday to finalize the budget for this fiscal year.

After 25 years with no tax increase, the committee reluctantly voted in favor of a 30-cent property tax increase.

The 30-cent hike is lower than the previously proposed 42-cent increase for Madison County residents.

Implementing a wheel tax was taken off the table because it was unclear how much revenue it would generate.

The committee also decided to create an alternative revenue committee.

Many commissioners say raising taxes wasn’t something they planned on doing a few months ago but their hand was forced.

“Because of the situation we were put in by the city, we did not have any other alternative to do this,” Budget Committee Chairman Doug Stephenson said. “We could have taken money out of the fund balance, but that just kicks the can down the road and causes us a lot of problems.”

Committee members agreed this was the most efficient way to pay their $6 million share to the school system.

The final budget vote will take place July 18.