CLARKSVILLE, TN (CLARKSVILLE NOW) – The City Council voted down a resolution Thursday for the city to withdraw from a local option sales tax agreement with Montgomery County, which would have been phased over the course of several fiscal years.
The agreement, part of a referendum approved in 1977, provided a share of the city’s sales tax revenue to local schools, through the county, currently totaling about $3.5 million a year.
Councilman Brian Zacharias sponsored the resolution, saying the City of Clarksville is at the edge of a “financial cliff” based on projections he shared more than a month ago.
Concerns about city being sued
Zacharias introduced an amendment Thursday to allow the county to keep the revenue for FY 2027 as well. “This amendment gives a committee, should it be formed, the flexibility that they need to come up with a plan that serves the city and the county,” Zacharias said…