A resolution requesting the Davidson County Delegation to the Tennessee General Assembly to take the action necessary to allow county governments to base the amount of wheel tax to be paid on the value of the vehicle.

WHEREAS, for many years the Metropolitan Government has charged a motor vehicle regulatory license fee, commonly referred to as a "city sticker", for all commercial and passenger vehicles registered in Davidson County; and

WHEREAS, the proceeds from the Metropolitan Government motor vehicle regulatory license fee must be used to pay the costs of administration and enforcement of the licensing of motor vehicles, for the promotion of traffic safety, and for the installation of traffic signs, signals, and other safety devices; and

WHEREAS, T.C.A. §5-8-102 authorizes county governments to levy a motor vehicle privilege tax for "county purposes"; and

WHEREAS, Article II, Section 28 of the Tennessee Constitution provides that "the ratio of assessment to value of property in each class or subclass shall be equal and uniform throughout the State", and that "each respective taxing authority shall apply the same tax rate to all property within its jurisdiction"; and

WHEREAS, all of the 53 counties in Tennessee that currently levy a wheel tax charge a flat amount for each vehicle, regardless of the value of the vehicle; and

WHEREAS, the wheel tax has been referred to as one of the more regressive forms of taxation, since all drivers must pay the same amount whether they drive an expensive vehicle or not; and

WHEREAS, it is fitting and proper that county governments have the option of basing the amount of the wheel tax on the value of the vehicle.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:

Section 1. That the Metropolitan County Council hereby goes on record as requesting the Davidson County Delegation to the Tennessee General Assembly to take the action necessary to allow county governments to base the amount of wheel tax to be paid on the value of the vehicle.

Section 2. The Metropolitan Clerk is directed to send a copy of this Resolution to each member of the Davidson County Delegation to the Tennessee General Assembly.

Section 3. This Resolution shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Ludye Wallace

LEGISLATIVE HISTORY
Referred:	Budget & Finance Committee
Introduced:	July 19, 2005
Adopted:	July 19, 2005
Approved:	July 25, 2005
By: