By MIKE KRAFCIK
6 News Reporter
MARYVILLE (WATE) -Blount County commissioners took another step Tuesday toward putting a sales tax referendum on the ballot for November's general election.
Commissioners voted to move the sales tax discussion to the full agenda. They will take a vote August 16 on whether the referendum will go on the ballot.
Commissioners are considering matching the half-cent sales tax increase approved by Alcoa voters last week aimed at funding a new $30 million proposed high school.
The county budget committee advanced the proposal Monday.
After voters approved the sales tax increase in the city of Alcoa, many in Blount County want their fair share of the pie.
The tax could raise $7.6 million for the county annually, according to Blount County Director of Accounts and Budgets Randy Vineyard. If a tax increase gets on the ballot the county sales tax will go from 9.25 percent to 9.75 percent.
Commissioners say the idea was spawned after Alcoa passed its increase.
"Since it did happen, the county citizens are saying, 'Why don't we get our portion of that?'" said Steve Samples, a Blount County commissioner and budget committee member.
The referendum would be earmarked with half the money going to the highway department, the other half to Blount County Schools.
Right now the school system is carrying a $5 million deficit.
The Blount County Commission turned down the school system's request for extra funding during the county's June budget hearings.
"We need these additional revenue dollars to keep our critical services in place and to afford the types of the things are in a 21st century classroom," said Blount County Director of Schools Rob Britt.
A tax increase could generate $2.3 million for the school system annually.
Right now, Alcoa spends about $2,000 more per pupil than Blount County.
"That tax needs to be spread out for all of children in Blount County," Britt said.
If Blount County voters decide to increase the sales tax by .5 percent to match Alcoa, then Blount County will get half of Alcoa's sales tax increase.
Otherwise, Alcoa keeps the entire increase. If Blount County voters approve the referendum question, the sales tax will go up in Maryville too because the county supersedes all municipalities.
If a county-wide tax does pass, it wouldn't affect plans for Alcoa's proposed $30 million high school.
According to a state formula, Alcoa's city's sales tax collections would be redistributed throughout the county's three school systems: Alcoa, Maryville and Blount County.
"If you got a bucket with X amount of money in it that we get to keep 100 percent, if the county passes a sales tax referendum, and they get to take part of that bucket away, then it diminishes our revenue resources," Alcoa Assistant City Manager William Hammin said.
For some Blount County residents, the verdict is out on whether residents will want to pay more sales taxes.
"We just need to take consideration that you know half of the people here are struggling. Fifty cents may not be a lot, but to some that adds up and is a lot," said Jarred LaRue, a Maryville resident and local business owner.
No matter what happens with a county-wide sales tax, the city of Alcoa will be able to keep all of the revenue from its sales tax increase for at least a year.
If the referendum is proposed and approved by voters in November, the county could start collecting the increased sales tax revenues by January 2013.
If Blount County voters decide to increase the sales tax by .5 percent to match Alcoa, then Blount County will get half of Alcoa's sales tax increase.
"Since it did happen, the county citizens are saying, 'Why don't we get our portion of that?'" said Steve Samples, a Blount County commissioner and budget committee member.
"If you got a bucket with X amount of money in it that we get to keep 100 percent, if the county passes a sales tax referendum, and they get to take part of that bucket away, then it diminishes our revenue resources," Alcoa Assistant City Manager William
