March 15, 2025
By: Dwayne Page
DeKalb County stands to gain under proposed legislation in the Tennessee General Assembly giving counties authority to increase the mineral severance tax for local road construction and maintenance.
The DeKalb County Road Department currently gets $30,000 per year from the county’s mineral severance tax assessment of 15 cents per ton on companies such as quarries and rock crushers that sever from the ground sand, gravel, sandstone, chert or limestone.
State Representative Michael Hale, who supports the legislation, said any increase in the tax would help.
“Currently the mineral severance tax is 15 cents per ton. Over a period of time, its going to go up five cents every five years to the point its going to be up to 30 cents per ton and that will be earmarked totally for roads. I think its around $30,000 right now for DeKalb County which doesn’t seem like a lot but when its doubled over time to $60,000 it will help especially when it costs $200,000 plus to pave one mile of road. Everything the county can get is a help,” said State Representative Hale.
Under the legislation as introduced, the rate of the tax must be set by two thirds vote of the county legislative body, but must not exceed the following amounts per ton on sand, gravel, sandstone, chert, or limestone severed from the ground in the county:
(1) For a tax period that begins prior to July 1, 2025, fifteen cents (15¢) per ton;
(2) For a tax period that begins on or after July 1, 2025, and prior to July 1, 2030, twenty cents (20¢) per ton;
(3) For a tax period that begins on or after July 1, 2030, and prior to July 1, 2035, twenty-five cents (25¢) per ton; and
(4) For a tax period that begins on or after July 1, 2035, and for subsequent tax periods, thirty cents (30¢) per ton.
According to the legislation, not less than thirty (30) days after the end of a county’s fiscal year, each county that receives revenue from a tax levied pursuant to this part shall provide an annual written report to the comptroller of the treasury, the commissioner of transportation, the chair of the transportation and safety committee of the senate, and the chair of the committee of the house of representatives having jurisdiction over transportation issues, detailing the amount of revenue deposited into the county road fund during the previous fiscal year, the amount of revenue spent by the county, and how those expenditures have been designated and used for construction, maintenance, and repair of the county system.
A county legislative body that has authorized a tax under this part may increase the tax rate in accordance with state law (§ 67-7-203) adopting a resolution by a two thirds (2/3) majority vote. The presiding officer of the county legislative body shall deliver a certified copy of the resolution increasing the tax rate to the department of revenue. The new tax rate must not be collected by the department of revenue pursuant to the county legislative action until the first day of a month occurring at least thirty (30) days after the receipt of a certified copy of such action by the department.