Jackson County has increased its mineral severance tax to 20 cents per ton on all sand, gravel, chert, sandstone, and limestone extracted within the county.
The change will generate dedicated funding for local infrastructure. Jackson County Mayor Brian Lee said the tax applies to every ton of stone sold from the local rock quarry.
“This money is restricted,” Lee said, “And it has to be strictly earmarked for the maintenance and repair of our county roads, and so that’s what we’ll be using any increase in revenue to do.”
Lee said the tax has existed since the 1980s, but a recent bill passed by the state legislature allowed the county to raise the cap on the rate. The increase received support from the Tennessee Association of Highway Commissioners and members of the aggregate industry.
“I think it’s something that most of the ones who it impacts are used to it in other areas, and so it’s just part of doing business,” Lee said.
Lee said county officials double check the extraction amounts reported by the company to ensure the county receives the correct amount of funding.
The tax captures revenue from builders and trucks coming into the area from other counties. Lee said utilizing alternative revenue streams helps the county fund necessary services without relying solely on local property owners.
“So this then goes back into our roads and so when anytime just like with tourism when we can utilize other means besides our local property taxpayers to fund things, that’s what we kind of have to do here in Jackson County,” Lee said.
The new tax rate went into effect on September 1.