Gas tax hike to fund Chapman fixes

As Gov. Haslam calls for a gas tax increase to help fund road improvements, one major project on TDOT's wish list is Chapman Highway.

Anyone who regularly drives the 10 mile stretch of Chapman Highway from South Knoxville into Seymour knows it needs upgrades.

TDOT cites "safety" as the reason.

Every day, tens of thousands of drivers flood that corridor. TDOT says more than 30,000 vehicles travel the north end on a daily basis and more than 22,000 vehicles pass through the southern portion.
The corridor in question stretches from Blount Avenue in South Knoxville, just across the Henley Bridge, to Boyds Creek Highway in Seymour, touching parts of Knox, Blount and Sevier counties.

"We have a lot of traffic flow on this highway and makes it a very dangerous highway," Tim Geagley said.

He would know a thing or two about safety. He's a firefighter and advanced EMT with the Seymour Volunteer Fire Department, as well as a Sevier County 911 dispatcher.

"Chapman Highway is one of those roads where we have worked an accident, like, every hundred yards along its length," Geagley said. "There's been an accident at some point along the whole length of this highway."

RELATED: Haslam plan calls for 7-cent gas tax hike, cuts to grocery sales tax

With no designated left turn lane along much of the route and some tight bends and hills, it's no wonder why TDOT lists "safety" as the reason for needed improvements.

"I believe we work at least one to two accidents per week on this stretch of road," Geagley said.

RELATED: Gov. Bill Haslam speaks on gas tax, legislative agenda

Haslam is proposing a gas tax increase - the first hike in nearly 30 years - of 7 additional cents for a gallon of gas and 12 extra cents for diesel.

"I'm in favor for that," Geagley said. "If it's going to, you know, help with the safety on this road, yes."

John Linsenbigler wears two badges. He's the Seymour Volunteer Fire Department's executive administrator and president of the Seymour Area Chamber of Commerce.

In both roles, he said, he's in favor of improvements to this stretch of Chapman Highway.

"There's a lot of commercial property that's available on the Chapman corridor, from John Sevier down to Highway 411," he said. "If they get this done, get the left turn lane in, that would open up more businesses for safe travel."

It won't be a swift process, however.

"Any time construction goes on, local businesses usually suffer because of reduced traffic," Linsenbigler said. "I look forward to the finished product ... It's not going to happen quickly because of the amount of below utility and infrastructure they have to put in."

TDOT estimates the cost of the Chapman Highway improvement project at nearly $45.3 million.

Altogether, Haslam said, the gas tax increase would raise an estimated $278 million to fund 962 road projects across all of Tennessee's 95 counties.

The governor hopes to have most of the backlog construction projects at least underway within six years.

County property tax collections up

Knox County property tax collections are up again this year, reaching what could possibly be an all-time high, but officials say there’s still more money to go after.

The county Trustee’s Office closed the books Feb. 29 on the current tax season, bringing in $249 million from property owners who paid before the deadline.

That amounted to a roughly 96.5 percent collection rate from taxes tied to some 206,000 parcels throughout the county.

But, Trustee Ed Shouse says there’s still about $6 million in outstanding taxes, and those who haven’t paid up now also owe an additional 18 percent penalty fee.

“Every year there’s an increase (in collections),” said Shouse, who wrapped up his first full tax season as trustee. “I can’t speak definitely whether it’s record breaking or not, but it’s a good number for us to work at every year and we’ll try to improve it every year . . . . I can’t promise you we will, but we’ll do our very best.”

Collections – mostly due to overall natural growth in the county – continue to rise.

For example, the office last year collected $247 million by the end of February deadline. Five year ago, it brought in $231 million.

“Frankly having an extra day to pay your taxes helped,” Shouse added, referring to leap year. “Every four years you’re going to get an extra day – that helped. And I think we were more aggressive in the way we sent notices out, processing and returning mail – common sense things. Using Google, KGIS and just trying to find people’s correct address.”

Full story RIGHT HERE.

Proposed budget: No tax increase

Rogero

Knoxville Mayor Madeline Rogero unveiled her proposed budget on Wednesday, a $302.68 million spending plan that doesn’t include a tax increase but features funding dedicated to a number of major initiatives including streetscapes and community service organizations.

The overall budget is about a 4.5 percent increase from the current one, but officials said the additional revenues came from natural growth.

In addition, the budget includes a $212.5 million general fund - which covers most of the city's day-to-day operations - that is an almost 3 percent from the current budget.

The plan will cover the upcoming fiscal year, which begins July 1.

Rogero, during her presentation at Zoo Knoxville, emphasized the momentum and economic development occurring across the city – and also the need to ensure that all residents share in the growing prosperity.

“Stronger, safer neighborhoods are more than quality police and fire protection and more than bricks and mortar,” Rogero said, speaking to a crowd of hundredse. “Strengthening the social fabric and ensuring success for families and youth are even more essential.”

The streetscape project for a four-block section of Magnolia Avenue from Jessamine to Bertrand streets represents the largest new capital investment in the budget, at $4.39 million.

The project was first proposed in the Magnolia Avenue Corridor Plan adopted by City Council in 2009, and has been in various stages of public input and design for the past two years. The eventual plan is to redesign all of Magnolia Avenue from downtown to Burlington, to make it more attractive and safer for local residents drivers, pedestrians, cyclists and transit riders.

Rogero also reiterated her commitment of a $250,000 capital grant to The Change Center, a new recreation and jobs center for young people on Harriet Tubman Street that was announced April 20.

She also proposed an additional $50,000 for the City’s Save Our Sons initiative to reduce violence and increase opportunities for young men and boys of color, doubling its programming capacity.

Further, she included another annual commitment of $250,000 for the Great Schools Partnership to support Community Schools in center city neighborhoods.

Among other highlights of the proposed budget:

• $2.7 million for sidewalks and crosswalks across the city, including $750,000 for sidewalks within school Parental Responsibility Zones and another $750,000 for new sidewalk construction;
•  $1.3 million for an advanced traffic management system (ATMS), which will allow networked, responsive timing of traffic signals to enhance traffic flow and reduce congestion and pollution;
• A combined $1.25 million in grants to local arts, culture, community and social service nonprofit organizations;
• $1 million for development of greenway corridors;
• $5.8 million for the City’s annual street paving program, plus $3 million for phase 2 of the Pleasant Ridge Road project, $1.5 million for Kingston Pike improvements and $1.12 million for improvements at Merchants Drive and Clinton Highway;
• $726,500 for economic development efforts through Innovation Valley, the Knoxville Chamber, the Knoxville Entrepreneur Center and the Visit Knoxville Film Office;
• $731,000 for homelessness efforts, in staff positions, case management contracts and grants;
• $500,000 for the Historic Preservation Fund, to help fill financing gaps for renovation or restoration of historic properties;
• $300,000 for public art, including $50,000 to support Dogwood Arts’ “Art in Public Places” program;
• $200,000 toward a program for pre-arrest diversion of individuals with mental health and substance abuse issues.

Knoxville City Council will consider the budget on first reading at its May 10 meeting, followed by Council’s public budget hearing on May 17. The budget is scheduled for final adoption at Council’s June 7 meeting.

Mayors prepare for Hall tax cut

A move by state lawmaker to cut and eventually repeal Tennessee’s Hall income tax on stock and dividends could force local governments to either cut services or raise taxes to make up the financial difference.

Knox County and Knoxville, however, should be fine. For now.

Still, local mayors are not happy with the cut.

At issue is a tax that affects about 2 percent of the state households and mostly its wealthiest residents. The state taxes income from taxable stock dividends and certain interest.

Knox County the past five years has received between $2.2 million and $4.5 million from the tax. Knoxville during the same time period has received between $4 million to $12.5 million.

“I am opposed to the move to cut and eventually abolish the Hall tax,” Knoxville Mayor Madeline Rogero said. “The City of Knoxville budgets about $4 million a year for Hall tax revenues. That’s the equivalent of about 10 cents on our property tax rate. In order to give what amounts to a small tax cut for the wealthiest people in the state, our Legislature is shifting millions of dollars a year in public services onto the backs of middle- and lower-income residents.”

Any amount that comes in over what the city budget gets invested directly into needed public infrastructure, like sidewalks, bridge repairs, and streetscapes.

The bill state lawmakers approved on Friday will cut the income tax this year and repeal it in 2022.

For Knox County, the immediate cut is expected to be as much as $500,000.

“In politics people are always taking credit for things but you’re not getting the full story,” Knox County Mayor Tim Burchett said. “It sounds great to eliminate a tax – but you’ve got to realize – it only affects 1 percent of the population, usually the wealthiest of our population. It’s serious business. Some of these smaller communities – it could really hit them hard. And some of the bigger ones rely more heavily on it – some of our more wealthy counties.”

When asked whether the hit would affect services, Burchett said he didn’t think it would for Knox County.

“That’s why I’ve been fiscally conservative all these years,” he said. “We made cuts and we have monies that we can apply to other things. We’re not going to cut services mainly because our fiscal budgets have been incredibly conservative, and (the Knox County) Commission has done a good job on holding the line on spending.”

But, the mayor said no state legislators contacted local officials about the bill.

BY THE NUMBERS

Below is a look at the revenues received by the county and city during the past five years.

Knox County Halls tax revenues

• 2015: $4.5 million
• 2014: $2.2 million
• 2013: $3.2 million
• 2012: $2.9 million
• 2011: $2.7 million

Knoxville Halls tax revenues

• 2015: $8.4
• 2014: $9.2
• 2013: $12.5
• 2012: $3.9
• 2011: $7.3

Knox Commission to talk tax breaks

The Knox County Commission on Monday will decide whether to sign off on tax breaks for two major downtown developments – one that will create 100 condominiums and the other that will call for almost 150 apartments.

At issue is whether to grant a PILOT for the second phase of the Marble Alley project on State Street to help build an underground parking garage inside the apartment complex.

Under the proposal, the developers would make $51,450 payments a year for a decade instead of paying the full amount of property taxes during that time. The move saves developers money since they’re not paying additional taxes on the improvements they make to the property during construction.

The commission also will talk about whether to approve a $5 million "tax increment financing" package for the Jackson/Depot development near the Regas building.

Under the proposed plan, condo developers would pay $45,745 to the county and $69,700 to the city in taxes each year for up to 20 years. Afterward, the county would get $223,000 a year and the city would receive $262,000.

County, state, clerk split account

Remember that $2.6 million unknown account that Knox County Criminal Court Clerk Mike Hammond found when he took office and the ol' blog broke the story?

You can read about it RIGHT SMACK HERE.

Well, a little update.

The state, of course, wanted a cut.

So, after almost a year of discussion, the state agreed to take $451K for what's called litigation taxes and some interest, and the county gets $1.2 million. The clerk's office will get the rest to cover salary.

Arnett: $345K collected in taxes

Foster Arnett

Knox County Clerk Foster Arnett Jr. told the county’s Audit Committee on Thursday that his office has collected $345,815 in outstanding hotel and motel taxes that had gone uncollected during the past two years.

He said he has about $130,000 left to go after.

The discussion comes more than six months after an internal audit report said at least a dozen local hotels and motels owed the county an estimated $476,000 from the past two years alone, and that four hotels alone could owe an additional $255,000 "for periods outside the audit scope."

County lodgings are expected to charge a 5 percent occupancy tax that is used to fund tourism-related operations and programs in Knox County.

Arnett’s office is charged with collecting the money.

The county clerk took heavy criticism from other elected leaders, including many on the Knox County Commission, after the audit report was made public. Since then he’s sent letters to hotel and motel owners and also met with them to collect the outstanding taxes.

“There’s just a few left,” he said. “There is one that is fairly huge, but there’s a little here and there (from other motels).”

Arnett said he spoke with one hotel owner on Wednesday and “we made it very clear what their deadlines are.”

“We are following the law and working very closely with the law department to send out notifications,” he said. “We’re on the right track, I think.”

State law prevents the county from releasing the names of those who owe money, although state leaders are looking into changing that.

Arnett says he's collected $180K

The Knox County Clerk’s Office has collected between $175,000 and $180,000 in outstanding taxes from local hotels and motels, Clerk Foster Arnett told local leaders Monday.

At issue was some $476,000 in occupancy taxes that businesses owed from the past two fiscal years. Arnett has come under fire in recent months as county officials say his office failed to go after the money and failed to notify them that the debt existed.

In mid-August, he told the county’s Audit Committee that he’d begun sending letters to hotel and motel tax scofflaws in an effort to go after the money.

The meeting followed an internal report that says at least a dozen of the businesses owe the county almost half a million dollars, and that four hotels alone could owe an additional $225,000 for period that weren’t included in the audit.

Full story RIGHT HERE.

Commissioners, public: Some of Clerk's claims just not adding up

Clerk Foster Arnett Jr

Some thoughts on yesterday afternoon’s Knox County Commission meeting with Knox County Clerk Foster Arnett Jr. in regards to the roughly $476,000 in estimated deadbeat hotel-motel tax debt.

First, know that there’s way more than $476K out there. It’s probably closer to $800K (we’re talking a period that dates back to 2009 and the $476K only touches a couple of years.).

Commissioners are not happy. Not overall they’re not. Poll the majority and a lot of them were not pleased with Arnett’s presentation yesterday.

Some felt like the numbers they got were not on the up and up, others felt the clerk’s office has taken a lackadaisical – at best – approach to collections, and others wondered just what is really going on.

A lot of claims, they (and people in attendance) told me after the meeting, just were not adding up.

So . . . here ya go.

During the meeting Arnett blamed – in part – his office’s inability to collect the $476K in folding paper on a short-staffed office.

Huh?

It appears that the majority of the commission isn’t buying this excuse. Seriously, this is an answer someone gives when they’ve had weeks to think about it. This is now an issue? Short staffed office? 

And the office has been short staffed for how long?

Commissioner Sam McKenzie said (I’m paraphrasing here): Spend some money to make money.

Don’t brag that you cut staff and expenses only to find out you’re not bringing in the coin.

Contradictions.

How many people actually owe this money? Arnett said he sent out two letters last week and then six are going out this week to the scofflaws. That’s eight.

When asked how many are more than 30 days behind, he said 12.

In interviews after the meeting, he told the media that it was eight.

The audit report suggests somewhere in the low 20s.

Arnett has claimed there’s nothing he can do about the deadbeats. There is. He can padlock doors. He can sell property.

He says he doesn’t want to do this and put people out of jobs.

WHAT?????

What do you think Knox County Trustee Ed Shouse is gonna say when Joe Blow tells him that he can’t pay his taxes? Is Easy Ed gonna give ol’ Joe a pass?

No, he’s not.

There’s no free passes here. Collect the money and quit making excuses.

Now, Arnett told the commission that he actually went down to padlock a door back in 2009. He said he had “chains in hand.” I wasn’t there, so we’ll just take him at his word. He said the owner came out and he promised that he’d cut him and check. Arnett said he did and that he’s been up to date since.

So, if this worked, then why aren’t we doing this every time?

Why is there $476K in coin out there?

Oddly enough, after the meeting, Arnett told reporters that he actually padlocked the door.

So which is it? Did you or didn’t you padlock a door?

OK, the local paper quotes Arnett as telling the commissioners: “If I’m not doing what needs to be done, there’s an election in three years, and someone else can take this over. We’re going by the law, by the book.”

That got a chuckle out of the back standing room. Talk about a red herring. Someone else is gonna take over his job in three years because Arnett is term-limited. (Of course he might have been talking about that long rumored run at mayor.)

There’s more.

Arnett tried an old political trick to soften the blow. Bait and switch.

He pointed out that his office during the past three years has collected more than $18 million in hotel-motel taxes and bragged about a 94 percent collection rate.

Um, this is called “doing the job.”

You’re supposed to have a 94 percent collection rate. Actually, when it comes to property tax collections, 98 percent is the average, so maybe 94 percent is low.

I don’t know.

I do know that that the manager at Tyson McGhee doesn’t brag that the airplanes over there all land safely.

You know why?

Because they are supposed to!

Now, people are going to think I’m picking on Foster. Heck, Foster is going to think I’m picking on him, and that’s fine. Whatever.

The ol blog is an equal-opportunity picker-on.

Just ask Foster’s last political opponent. We did a whole newscast on some of his claims.

In the meantime, I hope the people who owe the money pay up. I hope Foster doesn’t have to padlock doors, but if he comes to it, then he needs to.

Call up the media, bring out the cameras and chain the business.

That should get the others to listen.

The hotels.

The commissioners.

And the public.

Hotel tax scofflaws owe city $200K

OK, so the county is due almost $476,000 in delinquent hotel motel taxes. The city is due about $200,000.

The county clerk - in charge of collecting the tax - says he can't do anything about it. (Yeah, right.)

The city finance department - in charge of collecting the city's portion - actually padlocked a scofflaw or two's door in its time.

Guess what happened?

Yeah, they paid up.

The city also regularly sends out delinquent notices and contacts the owners.

Guess what?

They tend to pay up, too.

Anyway, here's a look at local government trying to get it right:

Seven local hotel and motel owners owe the city of Knoxville a combined $200,000 in delinquent occupancy taxes that date back 2 1/2 years.

Several of those hotels, however, are no more than a month behind on payment, so the majority of the outstanding debt is due from only a handful of the businesses.

The tax – a 3 percent fee charged to lodging guests – is used to pay off debt tied to the Knoxville Convention Center. The tax will expire in June 2032 when the debt is cleared.

The city this year budgeted $3.1 million in expected revenues from the tax. Last year, the city budgeted $2.75 million, but ended up bringing in a little more than $3 million.

WBIR 10News met Thursday with city officials to talk about the tax and what they’re doing to collect it. The meeting with WBIR comes in the wake of a 10News investigation that looked into the more than $475,000 owed to the county by local hotels and motels dating back two years, and the county’s failure to go after the money.

County Clerk Foster Arnett Jr., whose office is tasked with collecting the county’s 5 percent occupancy tax, told 10News that his “hands are tied” and he can’t do anything about it.

But, that’s not true. State law says his office can seize property “by any means,” lock the doors and sell it. He just hasn’t ever taken those steps.

The city, however, has employed some of these methods.

“Whenever someone is late, we send out delinquent notices, and hopefully that’s successful and generally it is because we don’t have that many people who are delinquent,” said Knoxville Finance Director Jim York.

But, if officials reach a stalemate with a business, then they can move to shut it down.

York said his office “once or twice” in his 27 years with the city has padlocked a door.

“Our ultimate authority is we believe we can issue a distress warrant and either lock the business or lock the hotel,” York said. “That’s an unusual occurrence and it’s rarely done.”
When it happens, though, it works.

“That typically gets people to pay,” he said.

The Knoxville Finance Department issues letters to the 90-plus hotels and motels inside the city limits each month, and most pay right away. They reach delinquency status after 30 days.

York said officials estimate that the city is owed an estimated $200,000 from seven hotels, but they expect payment from a couple of them soon.

The others make up the bulk of that tab.

York said they’ve sent letters to them, but they’re not necessarily to the point yet where they want to shut them down.

He said officials are looking for “in between” solutions, but declined to provide more details, since they might not pan out.

“A couple of those will probably pay up. They’re only a few days late or maybe a month late, but those are the ones who typically catch up,” York said. “And again we’re looking at what we can do to force the others to pay.”

Rest of story RIGHT HERE.

Law suggests clerk has powers to go after tax scofflaws; Arnett says no

Clerk Foster Arnett Jr.

The Knox County Clerk's Office failed to collect almost $476,000 in taxes from local hotels and motels the past two years, according to a recent audit, and county leaders say the amount is probably much higher than that.

The clerk, however, said he can't do anything about it. He said his office doesn't have the enforcement powers to make someone pay up.

"There's no law that says we can do that and that's why it's so frustrating," county Clerk Foster Arnett Jr told WBIR 10News. "It's kind of like ... sending a police cadet out to write tickets, but all they can do is put a note under their windshield and say, 'Gee, I wish you didn't park here.'"

Arnett added: "There are uncollected taxes that are out there because up until this point all we could do is send a letter and say we want you to pay your taxes, and if they don't there's not relief there – there's no enforcement for us to go out after those folks."

State law indicates otherwise.

WBIR reviewed 1982 legislation that created the county's occupancy tax – a 5 percent fee charged to lodging guests that is used to fund tourism-related operations and programs in Knox County.
The legislation gives a county clerk the "powers and duties" of the commissioner of revenue that are established under the state's "Tax Enforcement Procedures Act."

That means the clerk can seize property "by any means" in order to obtain payment, so long as a 10-day notice is issued to the property owner, according to state law.

Once seized, the clerk also can padlock the doors and begin the legal process to sell the property.
Arnett, whose office is charged with collecting the tax, said he was not aware of the law.

Full story RIGHT HERE.

McIntyre: Everything fine and dandy

Well, according to KCS Superintendent Jim McIntyre, the school systems appears to be right on track with this year's budget.


As one of my WBIR colleagues reports:

It's a plan that includes two new schools for the county.

McIntyre presented a report Monday night to the County Commission about the schools' budget as of May 31st.

Knox County is set to build two new middle schools in Gibbs and Hardin Valley.

McIntyre says both revenue and expenditures are on track and generally similar to past years.

Knox County Schools saw a $5.4 million dollar surplus in sales tax revenue which gives them more flexibility.

Mcintyre says "We're feeling okay about where we are and we're actually feeling very good about the fact that we're seeing a slight increase in the trend on sales tax revenue, so that's good news as well."

The commission expressed some concerns about revenue collected for drivers' education and Medicaid reimbursements, but McIntyre says he expected to fall short in Medicaid because it's still a work in progress.

He says he doesn't anticipate any problems with drivers' ed.

I hope he's right but I'll believe it when I see it. Glass is always half full.

Despite bad weather, state's February tax collections see big increase

There was some concern that the snow would affect tax collections for February, but the state is saying that is not the case.

According to a release, tax collections actually exceeded the budgeted estimates for February with overall revenues for the month coming in at $787.2 million, which is $25.8 million more than the state budgeted.                        

“Sales tax collections in February marked the seventh consecutive month this fiscal year in which collections exceeded budgeted expectations,” Department of Finance and Administration Commissioner Larry Martin said.  “As a result of a one-time event, Franchise and Excise tax collections were also above expectations.  

“The renewed strength in our sales and corporate tax collections is an indication of an improving economy in Tennessee.  However, more than half of our annual corporate collections materialize April through June, so we’ll continue conservative spending and monitoring revenue activity.”  

The general fund was over collected by $13.1 million and the four other funds were over collected by $12.7 million.

Sales tax collections were $17.9 million more than the estimate for February.  The February growth rate was positive 7.6 percent. The year-to-date growth rate for seven months is positive 6.86 percent.

Franchise and excise taxes combined were $7.3 million above the budgeted estimate of $42.8 million. For seven months revenues are over collected by $165.2 million. The year-to-date growth rate for seven months is positive 29.41 percent.

Gasoline and motor fuel collections for February increased by 8.71 percent, and were $3.8 million above the budgeted estimate of $66.3 million. For seven months revenues are over collected by $14.5 million.

Tobacco tax collections were $3.3 million under the budgeted estimate of $21.5 million. For seven months revenues are under collected in the amount of $5.9 million.

Inheritance and estate taxes were under collected by $1.9 million for the month. Year-to-date collections for seven months are $12.0 million more than the budgeted estimate.

Privilege tax collections were $2.6 million less than the February estimate, and on a year-to-date basis, August through February, collections are $2.4 million above the estimate.

Business tax collections were $4.5 million above the February budgeted estimate, and for seven months collections are $18.3 million more than the budgeted estimate of $20.6 million.

Year-to-date collections for seven months were $369.7 million more than the budgeted estimate. The general fund was over collected by $336.5 million and the four other funds were over collected by $33.2 million.

Storms could ding sales tax revenue

Chris Caldwell

Overall sales tax revenues for Knox County are up right now, but they could take a hit because of February’s snowstorms.

However, Knox County’s finance director, Chris Caldwell, says he’s not hitting the panic buttons just yet.

“It will be interesting to see what the February tax numbers are this year with the snow and ice events,” Caldwell said. “I would expect a possible decrease.”

Just how much, though, is not known at this point. The county won’t get the numbers back from the state until mid-April.

As it stands, the county is up $5.9 million in sales tax revenues from July through December – the first six months of the current fiscal year – compared to the same time period last year. The total does not include sales tax revenues from Knoxville or Farragut.

Overall county expenses are about even, so Caldwell said he’s confident that the numbers will eventually work themselves out.

But, the sales tax revenues are often fickle and officials say recent inclement weather could hurt them.

Last month was one of the coldest Februarys in Knoxville’s history with an average temperature of 32.1 degrees, which is 10.3 degrees below normal.

In addition, 8.2 inches of snow fell for the total month, which is 6.6 inches more than the average February.

Knox County schools were closed Feb. 16 for Presidents’ Day when the snow first fell and remained closed due to weather through Feb. 27. Many businesses were shut down as main and secondary roads were hazardous for drivers, and the Knoxville Police Department and the Knox County Sheriff’s Office responded only to life and death emergencies.

“There will be an impact,” Caldwell said. “But I don’t think you’ll see it being horrible.”

Knox County, Knoxville and Farragut brought in a combined $15.6 million in sales tax revenue in February 2014.

Sales tax revenues make up only 6.3 percent of the county’s overall general fund, but comprise about 30 percent of the school system’s budget.

Knox Co. vets respond to possible cuts to state tax relief program

Following our story yesterday, Rebecca Habegger talked to veterans about the tax relief program that is in possible danger. You can find her story RIGHT HERE.

Essentially, Gov. Bill Haslam is looking to cut funding for the program from $33 million to $29 million at a time when local officials say it actually needs another $5 million to maintain the status quo.

The plan – dubbed the "Property Tax Relief Program" – provides property tax rebates statewide for more than 150,000 disabled veterans and their surviving spouses, and senior citizens who earn $28,270 or less annually.

Under the plan, low-income seniors receive tax relief for the first $25,000 of their assessed property. Veterans who were disabled while serving get relief on the first $175,000 of their assessed property.

Here's our initial story RIGHT HERE.

Tax relief plan that helps a number of seniors, veterans in jeopardy

A state property tax relief program that helps disabled veterans and low-income senior citizens in Knoxville and Knox County is in financial danger as Tennessee lawmakers face a tight budget and recovering economy.

Gov. Bill Haslam is looking to cut funding for the program from $33 million to $29 million at a time when local officials say it actually needs another $5 million to maintain the status quo.

The plan – dubbed the "Property Tax Relief Program" – provides property tax rebates statewide for more than 150,000 disabled veterans and their surviving spouses, and senior citizens who earn $28,270 or less annually.

Under the plan, low-income seniors receive tax relief for the first $25,000 of their assessed property. Veterans who were disabled while serving get relief on the first $175,000 of their assessed property.

Residents apply at the local trustee's office and city tax collections department. If approved, the county and city then bill the state for the difference.

Last year, the program served 416 Knox County veterans and about 4,500 local seniors, providing for a combined $962,000 in relief.

Knox County's seniors got up to $145 in county taxes and $170 in city taxes docked from their tax bills.

Veterans got up to $1,015 in county relief and almost $1,200 in city relief.

Rest of the story RIGHT HERE.

Pilot Flying J dividend payment could mean another surplus for Knoxville

Last month, Standard & Poor released a report, noting that Pilot Flying J was buying back a bunch of its share. It got a little coverage, but the media that did mention it missed the big picture.

The truth is . . .  few care about a bunch of rich people buying back a company they already own more than 50 percent of. It's not like they're really buying back the company.

No, the real news is that the company will pay out $750 million in dividends to shareholders. So, what's the big deal? Well, it means the City of Knoxville can more than likely expect a whopping surplus from the Hall income tax at the end of next July.

DOCUMENT: S&P Report on Pilot

If you do the math (here, I'll do it for you) and you don't take any exemptions into account - and pretend all the shareholders live in Knoxville - then you're talking about a $16.8 million bonus check.

Now, it's not going to be that much, but if it's $15 million, don't be surprised. 

Here's a story we did about it last night. RIGHT SMACK HERE.

By the way, a similar dividend windfall happened back in 2012 when the Haslam family bought the Cleveland Browns. Joe Sullivan over the the Metro Pulse wrote briefly about it awhile back. Read that one RIGHT SMACK HERE.

County looking at amusement tax cut

In just a few weeks it will once again be "football time in Tennessee." Season tickets for the University of Tennessee's upcoming season have already been mailed and proudly display the phrase

"I will give my all for Tennessee today" that comes from the iconic sign that hangs outside the Vols' locker room.

However, when you buy a ticket to see UT football, men's basketball, or the Lady Vols, you do not give all of your money to Tennessee. That's the case today or any other day going back to the 1940s when the state passed an "amusement tax" that adds five percent to the price of UT home games in football and basketball. The tax also applies to almost all movie theaters in Knox County (an exception was given to theaters in Downtown Knoxville).

The five percent tax is split between the City of Knoxville and Knox County. The county's portion of the tax is relatively small, only half a percent. The other 4.5 percent goes to the city.

Now Knox County Mayor Tim Burchett says the county can do without its share of the tax.

"Doing away with our portion of it, it works out to a little more than $200,000. It's not much in terms of our total budget, but $200,000 to me is a lot of money," said Burchett. "People ask me why are we doing it and I say, 'Why not?' We take enough of your money already as it is."

The Knox County Commission will discuss repealing its collection of the tax during a work session on August 18. Burchett says he would like to see the tax phased out over a couple of years.

Read the complete story RIGHT SMACK HERE.

How tax bump will affect residents

So, last night the Knoxville City Council signed off on Mayor Madeline Rogero's budget, and the first tax increase - 34 cents - in a decade (you'll note that it was one penny less than the one Gov. Bill Haslam put in place when he was mayor).

Knoxville's property tax rate previously stood at $2.3857 per $100 of assessed value. The next tax bill city residents see will have a property tax rate of $2.72 per $100 of assessed value. This means a city resident with a $100,000 home will see an increase of about $84 per year.

What's really going on with the safety center and why no traction

We’ve got a story regarding the safety center, a long talked about proposal that would help take care of the locally mentally ill and maybe help ease the overcrowding problem at the local county clink.

It’s a great idea, but I just don’t see this thing happening. (Actually, I’ve said this plenty of times in the past, but  . . . whatever. And, hey, I hope I’m wrong.)

Anyhoo, here’s the deal.

The county asked for proposals to build and operate the center and in February wrapped up the bidding process. Only Helen Ross McNabb submitted a proposal. I’m pretty sure no one has even looked at it. 

It’s certainly not been vetted.

There’s a public safety task force designed to look into these things. I think they might have met in February. They have nothing scheduled.

In the meantime, Andy Black, who’s run Helen Ross since forever and was a huge proponent of the safety center is retiring.

Randy Nichols, the county’s district attorney general and another huge proponent, also is retiring.

(The third major proponent, Sheriff Jimmy “J.J.” Jones, still has his fingers crossed from what I understand and says that the state does have a grant that can help. I’m told the grant is good for about $250K, which isn’t enough)

Then there’s the debate over who is going to pay for this thing.

Knox County Mayor Tim Burchett says there’s agreement that if the county puts up $1 million (which it has) and the city puts up $1 million (which it hasn’t), then the state will put up $1 million (it hasn’t).

(The center by the way is expected to cost $2 million to build and another $1.7 million annually to operate. However, there’s supposed to be some savings, although it’s hard to pinpoint a number until it’s up and running.)

Now, the city folks say there is no agreement, and were pretty surprised that the mayor said otherwise.

Also, the city isn’t so sure it’s willing to put up $1 million. Don’t get me wrong: Officials there want to help, but they want to see a “viable” plan first.

In the meantime, there’s the issue of whether city residents get double-billed.

The county says the jail is filled mostly with folks from the city. The city, however, points out that the sheriff’s office and jail is a county responsibility. Further, city officials note that city residents pay county taxes.

So, if the city chips in $1 million and they pay county taxes, are they paying double? Well, it does sound like it.

Then there’s the fact that the city has all sorts of social programs and homelessness initiatives that the county doesn’t fund. (They also supply a ton of coin to KCDC.)

Burchett says he’s willing to wait another year and get everyone on the same page. If not, then they’ll have to go to Plan B.

At this point there is no Plan B.

In another year, however, I suspect they’ll have to come up with one.

Anyway, here’s the story.