Tennessee State Shared Revenue Review

January 25, 2016

Tennessee State Shared Revenue Review

 

In this world nothing can be said to be certain, except death and taxes.

Benjamin Franklin

 

I have been investigating the state of Tennessee taxes collected in Memphis and Shelby County and then the portion returned to us by the state. Then I decided to compare the results with Metro Nashville. In the 2016 upcoming national election one of the big questions is a large versus small central government. Should we send our money to Washington and let them decide how much and for what purpose some of it should be returned to us (less their cut) or should the Federal government stick to the original intent of the constitution such as defend the Country, establish a system of currency, deliver the mail and protect individual rights.

 

Therefore I decided to look at our local taxes which are sent to Nashville and then a portion is returned to Memphis and Shelby County. Here is the latest state returned revenue comparison sheet showing Memphis, Shelby County and a comparison with Metro Nashville.

 

You will see the big ones below.

 

The local option sales tax (the 2-1/4% tax) over and above the 7% Tennessee sales tax. $299 million.

 

The next big one is the use tax (stuff you buy out of state and ship in). $48 million.

 

Then down the list: gasoline and motor fuel tax ($17 million), tva in lieu of tax ($14 million) and tourist development zone ($12 million).

 

The alcoholic and beer tax only amounts to $1.4 million so drink up.

 

Overall we got $456 million back from the state whereas Nashville got $505 million.

 

What does it all mean in the big picture? For all its’ problems I trust my local and state government a hell of a lot more than my federal government. What do you think? Let me know.

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