The Hamilton County Commission has unanimously passed a resolution chastising city of Chattanooga officials for tax breaks given to developers without consulting county leaders.
“Unilateral action” from the city, the resolution states, “undermines principles of transparency, fiscal coordination and cooperative governance.”
The resolution states that it requires the city to seek the approval of the county mayor and the County Commission in the spirit of long-standing agreements before making deals with developers.
But the county does not have the legal power to impose such a requirement. Under state law, Chattanooga may approve deals with developers that partially shield property taxes from going to the county without notice or consent. Hamilton County, likewise, is permitted to approve tax breaks that affect city revenues without consulting the City Council or the mayor.