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The town of Signal Mountain is no longer considering raising its local sales tax in a time when money is already tight for many.
“Frankly I had no appetite for a tax increase either,” Mayor Bill Lusk said at the Nov. 9 Town Council meeting.
Councilman Paul Hendricks pointed out that the town is doing considerably well with its budget this year, especially considering the economy.
The increase came up locally based on rumors that the state might raise the sales tax in municipalities not charging the maximum amount and keep the difference. Lusk and others said that after talking to representatives at the state level that looks unlikely.
“I think that if we hear the legislature start talking about sales taxes and coming into communities not charging the maximum allowance, I think we want to talk about it again,” he added.
Town Manager Honna Rogers said “even those people I talked to who didn’t want it (raised) said they don’t want the state to get it either.” She said the town will reevaluate the issue next year.
“I do not believe we are completely safe always,” she said, pointing out that the state has taken over other line items in recent years. “The state’s in real trouble right now.”
But she added that a tax increase in an election year would spell trouble for incumbents vying for reelection.
Hendricks noted that local residents would ultimately have to elect to raise the tax if not done so by the state. In that instance, two votes would have to be taken by the Town Council, one of which would involve a time for public comment. If passed, the issue would then be voted on by citizens during a special referendum.
“It’s not something we can slip in on you all,” he said.
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