Wed
Jul 18 2012
08:16:am

The August 2nd ballot for City of Alcoa voters in Blount County, TN, will inclue a Sales Tax referendum. The City of Alcoa is proposing to levy a City sales tax of 0.50%. This will increase the current total sales tax rate from 9.25% to 9.75%, which consists of a local government portion increasing from 2.25% to 2.75%, the maximum allowed by the State of Tennessee.

The ballot does not indicate the sales tax increase is to pay for a new school in the City of Alcoa, however that is what has been reported.

The new Alcoa High School is estimated to cost $29,795,000.

According to the Maryville Daily Times, if the referendum is approved by a vote of the citizens, the city projects a sales tax collection of $3,140,000. But, Blount County could elect to take part of the sales tax increase, reducing the City of Alcoa's share to $1,711,300 ($1,570,000 for the city and $141,300 for City of Alcoa schools).

There are a lot of yard signs in support of the increased sales tax. I have not yet decided how I will be voting on this sales tax referendum. Typically funding for schools is through property taxes. Apparently the City of Alcoa doesn't think they will get a property tax increase approved. In addition, it seems the City of Alcoa wants people not from Alcoa to help pay for the new school.

Is this the best method to pay for a new Alcoa High School?

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