Cookeville Urging Lawmakers To Change State Sales Tax Revenue Provisions

City of Cookeville urging Tennessee legislators to consider making revisions to the state’s shared tax provisions and the way sales taxes are shared between the state and local governments.

City Manager James Mills said about 20 years the state increased its portion from six to seven cents and has seen huge surpluses as a result. He said Cookeville, along with other municipalities, is requesting the state to share more of that revenue with local governments.

“The estimates are for the City of Cookeville alone is that revenue would be over $600,000 annually that we would receive,” Mills said. “And why that’s significant, is that money, those sales tax dollars, are generated here.”

Mills said they are also seeking to change provisions that double the maximum amount of sales tax that can be taken from a single item. He said currently, the state receives the full portion of that.

Mills said both the current and previous city councils are in support of this effort. He said the move also has support from State Senator Paul Bailey and Representative Ryan Williams.

“We’re asking that the money stays here,” Mills said. “It’s always been my opinion is that the best government is that closest to the people which would be the city. And we’d rather be able to make the choice on how that money is spent rather than the state telling us or the money being tied up with red tape through grant funding.”