Williams Said He Hopes To Work On Returning State Sales Tax In 2024

Efforts to return some sales tax revenue to local municipalities did not make it to the final budget this year.

Cities like Cookeville have been fighting for several years to get the money, estimated between $72 and $86 million, returned to the local budget. State Representiative Ryan Williams said because Governor Bill Lee did not include the change in his original budget, the legislature could not find the money.

“The legislature only gets about $10 million recurring to be able to spend that way,” Williams said. “So even if we did a phased out approach, we there was no way we could do it in a reasonable time. So the hope is next year that the legislature and my colleagues will be advocating for the governor to put it in his budget so that we could do that. This is a top priority for TML, and so hopefully, we’ll be able to do it next year.”

Williams said the Tennessee Municipal League has set the return of this sales tax money as a legislative priority.

The issue dates back to 2002 when the state faced a budget crisis. The legislation allowed the state to retain a portion of sales tax revenues that had normally been reserved for local jurisdiction. The league argues that the state has found its economic footing over the last decade with budget surpluses, and the money should be returned.