Reference Number: 
CTAS-1614

Authority.  T.C.A. §§ 67-7-201 through 67-7-212.

Description.  This is a local option tax wherein a county legislative body by resolution adopted by a two-thirds majority vote may levy a tax on all sand, gravel, sandstone, chert and limestone severed from the ground within the county.  T.C.A. §§ 67-7-201, 67-7-212.  The county legislative body sets the rate, but the rate cannot exceed 15 cents per ton.  T.C.A. § 67-7-203. A tax authorized under this Section may be repealed by a resolution passed by a two-thirds majority of the county legislative body. T.C.A. § 67-7-201.

Distribution.  The Tennessee Department of Revenue collects this tax.  T.C.A. § 67-7-204. All revenues collected, less administrative expenses, are remitted to the county trustee quarterly and become a part of the county road fund.  T.C.A. § 67-7-207.

As shown in Mineral Severance Tax Rates and Distribution FY 2017, 68 counties impose county mineral severance taxes. Of those 68, 58 counties allocate the proceeds to the county highway fund, eight counties allocate the proceeds to the county general fund with one designating the funds for roads from the general fund, one county allocates the proceeds to education and one to debt service. Sixty-three counties impose the maximum rate of $0.15; one county is at $.14; three counties are at $0.10; and one county is at $0.05.