Tennessee: 'Litigation tax' OK'd for counties

NASHVILLE — In a parting gift to county governments, Tennessee lawmakers approved and sent to Gov. Phil Bredesen permissive legislation that allows county commissions to levy up to a $25 “litigation tax” on residents involved in criminal and civil court proceedings.

County commissions would have to approve the tax by a two-thirds vote. Money could go only toward courthouse security or renovations as well as jail or workhouse construction.

The bill began as an effort by Lt. Gov. Ron Ramsey, R-Blountville, to help Sullivan County but cash-hungry counties including Hamilton soon began clamoring to be included, lawmakers said.

“What happened was when it went back to the House, everyone and their brother either wanted in or out — 90 percent of them wanted in,” said Sen. Rusty Crowe, R-Johnson City, who handled the bill for Lt. Gov. Ramsey, the Senate speaker.

Sen. Crowe said House Minority Leader Jason Mumpower, R-Bristol, said “just do it such that a county can opt in if they want to take advantage,” and lawmakers did.

Hamilton County officials earlier sought to get included in the bill, but Rep. Gerald McCormick, R-Chattanooga, chairman of the Hamilton County legislative delegation, said he rejected their effort to get an amendment inserting the county after some delegation members raised concerns.

But after an amendment was added including all counties, Rep. McCormick said, he decided not to push an amendment specifically removing Hamilton because “county government called and asked to be included.”

All 95 counties have authority to implement up to a $10 tax, a legislative attorney said.

Hamilton County Criminal Court Deputy Clerk Edna Camp said she recalls the county now has the $10 litigation tax.