District 8, Hamilton County Commission Tim Boyd speaks on October 12, 2010.Hamilton County Commissioner Tim Boyd wants the state Legislature to make payday lenders pay more money to local governments, but two lending companies said they would oppose any new fees.
Boyd spoke before the county’s legislative delegation in December and asked them to consider “transaction fees” on payday lenders, check cashing companies and title pawn companies, to generate revenue for cities. There are no details on what the fees would be or how they would be collected. Under his plan cities would have the option to establish fees.
State Rep. Vince Dean, R-East Ridge, said the proposed bill filing deadline is Feb. 17, but he has not agreed to sponsor a bill based on Boyd’s proposal. He also is not aware of any other legislators who might be interested in sponsoring a bill.
The lenders, which typically loan smaller amounts of money than a traditional bank, do not generate sales taxes, but Boyd said these businesses use city services.
“I would like for them to let the municipalities have an option to charge transaction fees on these unregulated lenders,” Boyd said. “To me it’s just fair. Out here in East Ridge there’s a disproportionate number of them, and they don’t collect any sales tax like their neighbors.”