Tennessee
Memphis Sales Tax Revenue Is At Whim Of Tennessee Government
MEMPHIS, TENNESSEE – SEPTEMBER 7: Police investigate the scene of a reported carjacking reportedly … [+]
Sales tax revenue, often a significant source of funding for local governments, may be perceived as securely allocated to the municipality where it is generated—but this assumption overlooks the reality that state governments often retain considerable control.
In many states, the allocation of sales tax revenue to municipalities is not guaranteed, and may be contingent on compliance with state policies. This can be a powerful tool for reinforcing state priorities over local autonomy.
Memphis Gun Reform
A recent example in Tennessee illustrates the dynamic between states and municipalities. Memphis city leaders had approved a plan to place a gun control referendum on the November ballot, much to the chagrin of Tennessee state Republican leaders.
The referendum would address critical issues such as requiring permits for guns and banning assault rifles outright—but its placement on the ballot is an open question.
Tennessee Republican leaders threatened to withhold Memphis’ share of sales tax revenue, arguing the referendum would be tantamount to a circumvention of state law. The threat underscored the vulnerability of municipal budgets to state-level political decisions—because it worked. Election officials agreed to leave the gun control questions off the ballot.
The distribution of state sales tax revenue is often not a matter of simple allocation to where the revenue was generated, but implicates a complex interplay of power and politics.
Broader Implications
The outcome in Tennessee is a clear illustration that sales tax revenue, crucial for funding local services, can be wielded as a tool of political influence.
The ability of states to control the flow of sales tax revenue raises questions about municipalities’ ability to legislate—doubly so in states where there are significant political differences between cities and state government.
This pressure can stifle innovation in governance and prevent municipalities from addressing the needs and desires of their residents, where local conditions and priorities may differ significantly from those of the state. It also emphasizes the importance of the state government in any policy reform.
Policy Reforms
Moving forward, state initiatives could be encouraged to draft legislation that protects municipalities from financial retaliation in much the same way many state constitutions prohibit state legislatures from cutting funding from the judiciary.
Such legislation could include revenue allocation safeguards, wherein states guarantee municipalities will receive their share of sales tax revenue based on where it is generated, regardless of any local policy decisions.
Further, non-retaliation clauses could be encouraged, which would explicitly prohibit the withholding of funds as a punitive measure for policy differences. Such policies would, at least, require state governments like that in Tennessee to make their reallocations less explicitly retaliatory.
Ultimately, there would need to be judicial oversight, giving municipalities the right to challenge withholding of revenue in state court, with clear standards as to when it is and is not appropriate.
Conclusion
The ability of states to wield sales tax revenue as a cudgel presents challenges to local governance. To protect municipalities and ensure they can address their unique needs without fear of state financial retaliation, it is crucial for states to enact legislation guaranteeing fair and consistent allocation of sales tax revenue.
By implementing safeguards, non-retaliation standards, and judicial oversight, a balance can be struck that upholds both local autonomy and state interests.
Tennessee
In final address, Gov. Bill Lee credits TN economic, innovation gains
Take a ride in The Boring Co.’s Vegas Loop before Nashville gets its own
Here’s what it’s like to ride inside one of The Boring Company’s Tesla tunnels. The Vegas Loop, which consists of eight stations and under five miles of tunnel so far, offers a preview into what Nashville can expect in 2027.
Tennessee Gov. Bill Lee touted the state’s numerous economic achievements in his final annual Governor’s Address hosted by the Nashville Area Chamber of Commerce, as he prepares to retire next year.
On stage at The Pinnacle March 10, Lee praised his administration’s work over the past seven years to lower poverty rates and expand industrial and economic diversity in the state.
But he pointed out that he has a lot to look forward to after leaving public office, namely his large family.
“It’s the best part of my life,” he said, chuckling. “People often ask me what I’m going to do next. And I say, ‘Well I have 11 grandchildren.’”
Lee emphasized Tennessee’s declining poverty rates, increasing educational scores and ability to attract a plethora of high-paying businesses as wins during his administration.
“We’ve watched our poverty rate fall below the national average for the first time in the state’s history,” he said. “People in Tennessee have greater access to opportunity than they ever have before.”
The number of economically distressed counties were “cut in half” in the last few years, thanks to increasing business opportunities, he said. “Distressed counties” is a designation of the nation’s poorest regions, according to the Appalachian Regional Commission.
“Our economy has attracted $55 billion in investment — just $11 billion this past year,” he said. “300,000 jobs created in our state in the last seven years.”
Lee called out companies like Starbucks, which announced on March 3 that the company’s southeastern U.S. corporate office is coming to Davidson County; In-n-Out, which is currently establishing a $125 million corporate hub in Franklin; software company Oracle, which is building a global headquarters on Nashville’s East Bank; Elon Musk’s xAi; Ford and more as drivers of prosperity in the state.
“They’ve figured out that the business environment is here, and the culture is what they want for their people, and the opportunity exists for them to be more successful in our state than they might be across the country,” he said.
He also praised the Music City Loop, the privately funded tunneling project helmed by Musk’s The Boring Company to connect Nashville International Airport to the Tennessee State Capitol Building. Despite recent Metro Nashville opposition, Lee called the project an “innovative new transportation model to “move people…without charging taxpayer dollars.”
“It’s very exciting to me what they might [represent] for the future of transportation in our city and beyond,” he said. “Despite the political arguments about that, the pragmatic business argument for that is incredibly exciting.”
Lee closed the speech thanking business leaders for their support during the past seven years of his administration.
“I could brag about this state for hours,” he said. “Because I’ve come to know her people, I’ve come to know her communities, her leaders, her uniqueness and her prominence, and I have been awed by what I’ve come to know in the past seven years. And I am honored. It’s been the highest honor of my life to be in the spot I am in.
“Our best days are ahead of us,” he said. “There will be a future governor that can (bring) better statistics, and better opportunity, and more hope for our people. And that makes me happy. There will be more, and there will be greater, and we together will share in what that looks like.”
Have a story to tell? Reach Angele Latham by email at alatham@gannett.com, or follow her on Twitter at @angele_latham
Tennessee
Furman beats East Tennessee State for SoCon title, NCAA berth
ASHEVILLE, N.C. — Cooper Bowser had 21 points and 11 rebounds as No. 6 seed Furman beat top-seeded East Tennessee State 76-61 on Monday night to secure the Southern Conference tournament title and an NCAA tournament bid.
Furman (22-12) won its eighth SoCon title in program history and first since defeating Chattanooga in 2023.
Tom House added 13 points off the bench for Furman and Alex Wilkins, who scored a career-high 34 to help rally from an 11-point halftime deficit in the semifinals, scored 12. Bowser was 9-of-12 from the field to help the Paladins shoot 51%.
Brian Taylor II scored 14 of his 16 points in the second half for ETSU (23-11), which was in the title game for the second time in three seasons. Blake Barkley added 14 points and Jaylen Smith had 10.
House made Furman’s sixth 3-pointer of the first half to extend the lead to 37-27 with four minutes left. The Paladins led 42-35 at the break.
Wilkins’ steal and fast-break dunk extended Furman’s lead to 72-61 with 2:11 left and Bowser added a hook shot in the lane on their next possession for a 13-point lead.
ETSU went 2-of-7 from the field over the final five minutes to halt a comeback attempt. The Buccaneers finished 3-of-16 from 3-point range and 10 of 18 at the free throw line.
The Buccaneers were trying for their first NCAA bid since 2020.
Tennessee
Titans free agency: Tennessee signing offensive weapons to help QB Cam Ward, bolstering coach Robert Saleh’s defense, reports say
NASHVILLE, Tenn. (WSMV) – Let the spending spree begin. The NFL offseason is now in full swing as free agents are beginning to sign with new homes throughout the league ahead of the 2026 NFL Draft in April.
The Tennessee Titans are among the top franchises with the most cap space in the league.
Latest: Tennessee Titans reportedly trade young defensive tackle for Pro Bowl defensive end from New York Jets
Previous: Tennessee Titans release center Lloyd Cushenberry
Below is a look at the free agents and moves the Titans have reportedly made:
- Cornerback Alontae Taylor – three-year $60 million deal
- Cornerback Cor’Dale Flott – three-year $45 million deal
- Defensive tackle John Franklin-Meyers – three-year $63 million deal
- Quarterback Mitchell Trubisky – two-year deal
- Tight end Daniel Bellinger – three-year $24 million deal
- Wide receiver Wan’Dale Robinson – four-year $70 million deal
- Long snapper Morgan Cox – re-signed one-year deal
Before the free-agency frenzy, the Titans released center Lloyd Cushenberry and also reportedly traded away defensive tackle T’Vondre Sweat for Pro Bowl defensive end Jermaine Johnson.
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