County Sales Tax Angering City/Suburbs - FOX13 News, WHBQ FOX 13

County Sales Tax Angering City/Suburbs

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Memphis, TN -

Monday night, the Shelby County Commission voted to put a sales tax initiative on the ballot. It would raise the tax from 9 and a quarter cents to 9 and three quarters cents on the dollar.

But, this decision by the Commission is unpopular with all the cities within Shelby County. Most of the suburbs already passed a sales tax initiative on the august ballot and the city of Memphis and Millington are hoping to in November.

But, if the voters pass a county wide sales tax, those cities will have to share the revenue with the County.   

The suburbs were planning to use the extra sales tax revenue to fund municipal schools. So, if a county wide sales tax passes, many, if not all the suburbs, would have to also raise property taxes to support the school systems.

To top it off, the suburbs that already passed the hike in the tax will not get to vote on county wide tax in November.

State law says because they already approved it for their municipalities, they don't get to vote again.

The only suburb to vote will be Millington, because the voters there turned down the initiative earlier this month.

The unincorporated areas will vote, as well as Memphis.

Memphians will not see two sales tax initiatives on the ballot, one for Memphis, one for Shelby County.

City Councilmen were hoping to pass the sales tax increase to fix, once and for all, the budget problems that plague the city.

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