CLARKSVILLE, TN (CLARKSVILLE NOW) – Following a City Council presentation outlining why the City of Clarksville needs to revise the local options sales tax split with Montgomery County, County Mayor Wes Golden said he believes the move would shift 100% of the tax burden to county residents.
Proposed negotiation between City of Clarksville, Montgomery County
On Thursday, Councilman Brian Zacharias said he’s spent a lot of time looking over the city’s budget and shared his findings with the council that shows the city is “at the edge of a fiscal cliff.”
Zacharias said this year’s budget spends $6.9 million more than the city brings in, which comes after the council raised the property tax rate 9 cents and made $9.2 million in cuts during the budget process. He said the city is covering the difference with reserves, but if nothing changes, projections show the gap could grow by $25 million per year by FY 2031.
Zacharias said the city is the economic engine of Montgomery County, which is the reason the city and county should look to revise the split of the local option sales tax. He gave examples of how to phase the restructuring, as well as suggested ways the county can cover the difference…