Mineral Tax – Executive Summary

Jefferson County’s roads are deteriorating faster than the Highway Department can repair them due to heavy mining trucks, underground mining activity, and years of underfunded maintenance. Property taxpayers currently shoulder nearly all road repair costs. A Mineral Severance Tax — already used by 86% of Tennessee counties with producing mines — would generate $13.6 million over 20 years, all of which must legally go to the County Road Fund. This revenue could pave 100 miles of road, reduce pressure for future property tax increases, and ensure mining companies contribute fairly to the infrastructure they impact. Also, these minerals are being severed from our County … they are gone forever; the county currently receives zero BUT fairly deserves compensation for those lost minerals! Based on case studies from the 69 Tennessee counties that have successfully implemented this tax, there have been zero job losses and no mining company bankruptcies DUE TO A MINERAL SEVERANCE TAX — a proven record demonstrating that the tax is both fair and economically sustainable.