Emotions can soar when it comes to taxes
McMinnville city voters will find themselves in an interesting quandary this November if a referendum to raise the local sales tax 3/4 of a cent — while slashing the property tax — makes the ballot.
It’s a dilemma that’s hard to figure.
On one hand, the sales tax is Tennessee’s greatest albatross. Now zooming in on 10 percent, the sales tax is one of the bad words in our language. Talk about the sales tax and the conversation quickly slips to the unfairness of it all.
Mothers with babies are forced to pay close to 10 cents on the dollar for diapers, baby food and milk. It places an unfair burden on the poor – with those families shelling out a disproportionate amount of their income.
What could ever entice voters to agree to a higher sales tax? You wouldn’t think anything would – that is until you mention reducing the equally dreaded, equally hated city property tax. That’s when heads begin to turn.
The logic is simple and when it comes to shifting your tax burden to someone else, it’s not difficult to get a group of listeners.
City leaders figure since most of the county’s restaurants and retail stores are located within McMinnville city limits, raising the sales tax is a way to get non-city residents to pay city taxes. People who live outside the city would pay a greater portion of money for services they don’t receive.
And that’s where the referendum gains its steam. As a pat on the back to city voters for raising the sales tax, city property owners will have their property taxes greatly reduced. Some estimates have this reduction at over $1.
Tax-conscious city residents may have already done the math and found whether they project themselves to pay more or less under this proposed system. Chances are if residents will pay less in taxes, they will likely be for it.
That leads us to the all-important issue of staying informed and making a rational decision if the sales tax referendum does make the ballot. It’s all too common, during an emotional subject like taxes, to hear half truths and disinformation floating around. Coffee-shop talk and street-corner conversation have been known to steer clear of the facts.
The Standard encourages city voters to keep up with the 3/4-cent sales tax hike as it makes its way to the ballot. Realize the pros and cons and make a decision you believe will be best for yourself and in the best interest of this city and county.