Wheel Tax

Scott County’s $30 wheel tax was implemented in 2012 after being approved by voters on a referendum ballot.

The subject was first broached in September 2010, and then came up again several times before going before the voters in March 2012 as part of the presidential preference primary.

See Also: Scott County Property Tax Rate

Lead-up to wheel tax

At a Scott County Commission workshop in September 2010, the Budget Committee proposed a 25-cent property tax increase to help cover the debt on various construction projects, including the Scott County Justice Center that opened in 2008, and school expansion projects at Burchfield Elementary, Robbins Elementary, and Oneida High School. The Burchfield and Robbins projects had been approved in 2008, and the Oneida project was approved in 2010.

The need for a tax increase arose during the first meeting for several newly-elected commissioners in 2010, who were hit with the issue early due to a budget for fiscal year 2010-2011 not being adopted before the August 2010 election. The fiscal year began on July 1, 2010.

Even as the Budget Committee proposed a 25-cent property tax increase, which increased the tax rate from $1.97 to $2.22 and amounted to a 12.7% tax hike, newly-elected Scott County Mayor Jeff Tibbals warned that another tax increase would likely be necessary the following year due to ballooning debt costs.

Sixth District Commissioner Ron Blevins proposed at that meeting to leave the tax rate unchanged, at $1.97, and spend the rest of the fiscal year working to implement a $45 wheel tax, which he said would generate more than $80,000 monthly and help ease the burden on property owners. “A property tax (increase) of 25 cents is going to kill us,” he said. That proposal was opposed for various reasons by Mayor Tibbals, Commission Chairman pro tem Paul Strunk, and Budget Committee Chairman Willie Boyatt. The consensus was that the property tax increase be approved, and a wheel tax be considered moving forward.

Discussions begin in earnest

At an October 2010 County Commission workshop, University of Tennessee County Technical Assistance Service (CTAS) consultant Ben Rodgers was invited by Tibbals to speak on the subject of a potential wheel tax.

Rodgers informed commissioners that a $50 wheel tax would generate up to $844,000 in annual revenue for the county, and said it was the “fairest of all” taxes. But he cautioned that a public education campaign was necessary before attempting to implement a wheel tax. Tibbals, who cautioned that the presentation was for informational purposes only, “not a time for people to be raising their voice for or against a wheel tax,” said that the last four of the last five wheel tax referendums that had been posed to voters in Tennessee had failed by wide margins.

Path for a wheel tax

Rodgers told County Commission in October 2010 that there were three options for implementing a wheel tax: 

1.) Pass it by consecutive two-thirds votes by County Commission;

2.) Put it before the voters in the form of a referendum; 

3.) Petition the Tennessee General Assembly to enact a wheel tax on the county’s behalf. 

However, Rodgers cautioned that if either the first or third option was considered, voters could still force a referendum by presenting a petition signed by at least 10% of those who voted in the most recent presidential election.

Rodgers also told commissioners that if a wheel tax is earmarked for a specific project, it will sunset (end) once that project is paid for. Instead, he advised commissioners to earmark the wheel tax for the county’s General Fund, meaning the revenue could be used as County Commission saw fit, and the tax could continue indefinitely.

Questions about how to proceed

Despite the early discussion, the wheel tax was not discussed again for another year. In the meantime, County Commission passed a balanced budget in August 2011 that included no new taxes. The budget included nearly $630,000 in cuts.

Ultimately, a $30 wheel tax was proposed. It was scheduled for the first of two votes on Oct. 17, 2011. However, that vote was delayed by what Tibbals referred to as a “snag.” That snag was a proposal to exempt commercial vehicles from the wheel tax and to limit motorcycles to only half of the wheel tax ($15). The legality of those exemptions was called into question, and County Commission opted to seek an opinion from the Tennessee Attorney General.

Boyatt, the Budget Committee chairman, warned that up to $450,000 in new revenue was needed to balance the budget for the fiscal year beginning July 1, 2012, and said the only option left for commissioners was to start laying off county employees. “We’ve cut until there’s nothing else to cut,” Boyatt said.

One month later, however, commissioners decided to pursue a different path. On a recommendation from Tibbals, commissioners in November 2011 approved a resolution that would call for a public referendum on the issue, placing the issues before voters to either approve or reject. 

As presented, there were no exemptions except three permitted by state law: 

• Farm equipment;
• Former prisoners of war;
• 100% disabled veterans.

Also, Tibbals and the commission chose to ignore the CTAS recommendation that the wheel tax be earmarked for the county’s General Fund; instead, they earmarked it specifically for the school debt created by construction projects at Burchfield, Oneida and Robbins. 

The resolution passed by a 14-0 vote of the commission, and was scheduled to be placed on the ballot in March 2012 to coincide with the next presidential primary.

Boyatt cautioned his fellow commissioners before the vote to be careful about implying to voters that there absolutely would not be a property tax increase if the wheel tax were implemented, saying that future developments — including state-mandated raises for elected officials — could necessitate a property tax increase.

Tibbals said that he would not recommend a property tax increase if the wheel tax were approved by voters.

The vote

While only 23% of Scott County’s registered voters turned out for the March 2012 presidential primary, the wheel tax was approved by a landslide.

Needing only a simple majority — meaning one more voting for it than against it — the wheel tax passed by a 2,209 to 881 vote, with 71.5% of voters in favor of the wheel tax.

“I was very excited  to see that the people of Scott County realize the financial condition of the county and have overwhelmingly supported another source of revenue to help repay the debt created by building new schools,” Tibbals said. “The citizens could have said no to the wheel tax, but instead voted yes to show their support in our efforts of eliminating the mountain of debt that the county has amassed over the past few years.”

Since the wheel tax was earmarked specifically for the school debt, it will sunset when the school debt is paid off — around the year 2036. It was estimated at the time that the wheel tax would generate $500,000 annually for the school debt.

Scott County’s property tax rate increased from $2.22 to $2.25 the following year; however, that was not due to action by County Commission, but was the state’s certified rate after a reappraisal slightly lowered property values in Scott County. 

The next property tax increase in Scott County did not come until 2017, when it increased by 9 cents to $2.46. That was the last property tax increase implemented in Scott County. The current tax rate is $1.60, after lowering from $2.46 following a reappraisal that significantly increased property values in 2023.

Wheel tax elsewhere in Tennessee

As of April 1, 2012, 60 counties in Tennessee had a wheel tax and 35 did not. As of Jan. 1, 2024, 59 Tennessee counties have a wheel tax and 36 do not. 

Among those that do have a wheel tax, listed in order of least to greatest as of Jan. 1, 2024: 

Pickett – $10.00

Smith – $15.00

Fentress – $25.00

Lawrence – $25.00

Maury – $25.00

Wilson – $25.00

Williamson – $25.75

Scott – $30.00

Union – $30.00

Warren – $30.00

Overton – $30.50

Stewart – $35.00

Knox – $36.00

Henderson – $40.00

Johnson – $40.00

Trousdale – $40.00

Weakley – $40.00

Henry – $40.50

Jackson – $40.50

Hancock – $41.00

White – $42.00

Campbell – $45.00

Carroll – $45.00

Hardin – $47.00

Obion – $47.00

Claiborne – $50.00

Decatur – $50.00

Hamblen – $50.00

Jefferson – $50.00

Marshall – $50.00

Monroe – $50.00

Cannon – $50.25

Hickman – $50.50

Gibson – $50.75

Cheatham – $51.00

Sumner – $51.00

Rutherford – $52.50

Davidson – $55.00

Greene – $55.00

Dickson – $60.00

Tipton – $61.00

Wayne – $61.00

Lauderdale – $65.00

Lewis – $65.00

Macon – $65.00

Chester – $65.35

Hawkins – $67.00

Fayette – $71.00

Houston – $71.00

Crockett – $73.50

Montgomery – $74.00

Clay – $75.00

Lincoln – $75.00

Shelby – $75.00

Hardeman – $80.00

Robertson – $85.25

Haywood – $90.00

Dyer – $90.15

Lake – $100.00

Counties without a wheel tax: 

Anderson
Bedford
Benton
Bledsoe
Blount
Bradley
Carter
Cocke
Coffee
Cumberland
DeKalb
Franklin
Giles
Grainger
Grundy
Hamilton
Humphreys
Loudon
Madison
Marion
McMinn
McNairy
Meigs
Moore
Morgan
Perry
Polk
Putnam
Rhea
Roane
Sequatchie
Sevier
Sullivan
Unicoi
Van Buren
Washington