Memphis Council Moves Toward Gas Tax, Sales Tax Increases

The Memphis City Council on Tuesday ushered along two tax-related referendums that could have large implications for property taxes and city services, according to the Commercial Appeal.
A proposed referendum asking voters to levy a 1-cent tax on every gallon of gasoline purchased in Memphis was approved by a council committee. The full council also approved on the first of three readings a proposed referendum ordinance asking voters to increase the local sales tax rate by half a cent.
Councilman Edmund Ford Jr. said the gasoline tax, if approved by voters, could bring in $3 million to $6 million a year for the Memphis Area Transit Authority. A final vote on the proposal is scheduled for Aug. 7.
“The taxpayers don’t have to worry about the money going somewhere else; it’s going to public transportation,” said Ford. For years the city has subsidized cash-strapped MATA with funds from its operating and capital improvement program budgets, and MATA officials have repeatedly asked city officials for a “dedicated funding source.

One thought on “Memphis Council Moves Toward Gas Tax, Sales Tax Increases

  1. Eric Holcombe

    “…could bring in $3 million to $6 million a year for the Memphis Area Transit Authority.”
    Gee, with a 100% margin of error apparently being acceptable, maybe you would want these guys to sharpen their budget pencils a little before giving them more money to play with.

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