Now that the Loudon County Corrections Partnership
Committee has voted in favor of renovating the
current Justice Center property as a way to mitigate
inmate overcrowding, and with other funding concerns
on the horizon, Loudon County Commission may be
faced with coming up with alternative methods for
raising revenue.
Commissioner Kelly Littleton-Brewster said she
thinks a wheel tax might be the way to go to
generate more money.
She said she initially brought up the idea when
commission voted and approved the current
2015-16 budget, and she thought commissioners
and the budget committee may soon want to begin
considering additional sources of revenue. As it
currently stands, the plan is to make a proposal
to commission and the budget committee sometime
during the next budget cycle in 2016.
“We have some financial issues that are going to
be facing in the county that are going to be
coming to light very soon, and we need to quit
putting so much of the burden on the taxpayers
and the property owners, the property
taxpayers,” Littleton-Brewster said.
Potential funding concerns for the county
include construction costs for the jail
expansion, a pending lawsuit with General
Sessions and Circuit Court Clerk Lisa Niles, who
is seeking additional money for six new deputy
clerks at a base salary of $31,000 and raises
for current employees, and additional funding
for the proper care of county roads.
Littleton-Brewster said Road Superintendent
Eddie Simpson has told her the roads were in
“very bad shape.”
“My proposal is not to just increase property
tax but that we need to look at a wheel tax that
can affect all the people of Loudon County,
people that are using our school system, that
are renting,” she said. “There are several
people that are not property owners of Loudon
County, and instead of putting all the burden on
the property owner, I feel like that that might
be something we need to address is a wheel tax.”
Littleton-Brewster said she has been playing
around with numbers, specifically a $25 and $50
wheel tax. Monroe County currently levies a $50
wheel tax and has benefited from the additional
revenue, she said.
After speaking with Loudon County Clerk Darlene
Russell, Littleton-Brewster said she learned
there were “approximately” 57,000 vehicles
registered in the county.
“I think one of the justifications is that I
think that when we increase property tax you are
only hitting a certain group of citizens of
Loudon County, and I feel like with a wheel tax
that you will get a broader spectrum of people,
and I think (that’s an option) instead of just
putting the burden on the property owners of
Loudon County,” Littleton-Brewster said.
Commissioner Leo Bradshaw said he thought a
wheel tax would at least be “fair” to consider,
especially given the impending jail expansion.
“I’m sure that’s going to come up for discussion
and debate,” Leo Bradshaw said. “From the
feedback of what I’ve gotten from the public is
that it’s not desired. They, of course, really
are turned off by the wheel tax. Of course, in
my opinion it’d be a more fair way of raising
revenue for our jail facility in that it’s not
deferred to a lengthy property owners but that’s
going to be another issue. I’m sure lot of
discussion will be debated on that one.”
Littleton-Brewster said she couldn’t think of
another way to generate more revenue unless
commission were to “continue to just cut
spending out completely and the jail becomes
completely overcrowded.”
“I think the commissioners are all going to be
open to that,” she said. “I think when we start
looking at that we’re going to have to come up
with revenue to pay for these for jail, for all
of the things that are coming about. I think
other commissioners are going ... to be on board
with this instead of putting the burden on the
taxpayers, and they’re going to see that.”
Other solutions?
County Commissioner Van Shaver said he opposed
the idea of a wheel tax and instead believes
commission could look for ways to make further
cuts in the county’s budget “if the necessity is
there.”
“I don’t see anything that would necessitate any
tax increases this time,” he said. “We have a
very, very healthy fund balance, the county
does. The school board has a very, very healthy
fund balance. So if we’re carrying good
balances, and we got our budget under control,
then we may have a penny or two or three here
that we could shift around. That would be — I
would certainly go there long before I would
even consider a tax increase.”
Loudon County Elections Commissioner Susan
Harrison said the last time a vote for a wheel
tax was placed on a ballot was in 2008 when it
was voted down, with 1,226 in favor and 5,032
opposed.
“When the voters, they don’t want it, it’s
certainly not my place to say, ‘Sorry, you’ve
got take it anyhow’,” Shaver said. “Now whether
or not anybody else will or not I can’t speak
for them, but it’s just another tax increase any
way you slice it or dice it. We know how the
voters feel about this one.”
Shaver said he wasn’t convinced the county even
needed an expansion to the jail, and he said the
county could consider other alternatives to
mitigate possible overcrowding.
“It wasn’t a year ago we were told we had to do
$47 million, so that didn’t fly so now we’re
down to $10 or $15 million,” he said. “So maybe
if we let them think about it another year, they
can get it down to nothing.”
County Commissioner Henry Cullen said he would
like to wait and see how much the jail expansion
will cost before he makes up his mind on a way
to move forward on funding. Currently, the
county is accepting requests for qualifications
for architects to present the jail committee
with design plans and anticipated costs.
“How we pay for it? That’s going to be down the
road,” Cullen said. “Either raise taxes or, as
Kelly said, look at a wheel tax. I’m not sure a
wheel tax would stand much of a chance of
getting approved, although I can only speak for
myself. Although it does take the burden — a
wheel tax takes the burden off the property
owners and puts it on the people who operate a
vehicle and register in the county of Loudon.”
Like Shaver, Cullen said combing through the
budget to look for additional cuts may also be a
plan. The “last resort” would be to further
raise property taxes.
Property tax rate inside county limits is
$1.8587 on each $100 of taxable property. Inside
Lenoir City limits the rate is $1.5387,
according to a resolution fixing the tax levy in
the county that went into effect July 1.
“The last resort is to raise the taxes, although
down the road I’m not saying we can carry
($1.8587) indefinitely,” Cullen said. “Costs go
(up), expenses go up, and that’s just the way
life’s going now, so I can’t say, ‘Your taxes
are going to be ($1.8587) forever.’ I wouldn’t
make a foolish statement like that at all. But
I’ll tell you what, it’s going to take a long
hard look before we do vote to raise them.”