Oneida implements 4% lodging tax
Plus: Scott County's tax burdens is one of the nation's lowest, and new details on the abandoned plans for a trash transfer station at the old Hartco site.
Good Thursday evening! This is The Weekender, a final look at this week’s news from the Independent Herald. The Daybreaker (Monday) and The Weekender (Thursday evening) are our two news-first newsletters. We publish several other newsletters throughout the week, as well as our regular E-Edition on Thursday and our Varsity E-Edition on Sunday (during sports season). If you’d like to adjust your subscription to include (or exclude) any of these newsletters, please do so here. If you haven’t subscribed, please consider doing so!
Today’s newsletter is sponsored by Buckeye Home Medical Equipment. Serving Scott County and several other communities in the Upper Cumberland region, Buckeye is a full-line DME providing home health equipment to its patients.
Oneida implements 4% hotel-motel tax for tourism purposes
ONEIDA | The Town of Oneida has adopted a hotel-motel tax that will generate revenue for its efforts to grow tourism.
According to Virginia Bruce, the town’s Community Development Coordinator, the funds will be used “exclusively” for tourism development, and the tax could generate several thousand dollars each year.
“According to the TN Dept. of Tourism Development, the town is leaving about $6,000 on the table annually by not having a hotel tax,” Bruce said.
Hotel-motel taxes are known by different names, including a lodging tax. Effectively, such taxes are occupancy taxes on short-term rentals — and not just hotel and motel rooms, but also AirBNB and VRBO rentals, as well as any other type of overnight rental.
According to an ordinance that was passed by the town on second reading in April, short-term rentals are defined as residential dwelling units that are rented for less than 30 continuous days.
The town’s occupancy tax will be 4%, which will be assessed in addition to Scott County’s 5% occupancy tax, as well as state and local sales taxes.
Bruce reiterated that the tax will not be paid by local residents or business owners.
“This is a tax paid by visitors who spend the night in our hotels or short-term rentals,” she said.
It is not uncommon for counties and municipalities to levy a hotel-motel tax for tourism-related purposes. Under state law, hotel-motel tax revenues can only be used for the promotion of tourism and tourism development. The assumption is that the funds should go to tourism development because they’re being paid by tourists. The Tennessee General Assembly passed a law in 2021 authorizing all municipalities in the state to levy a lodging tax, at a maximum rate of 4%.
Scott County’s hotel-motel tax, which was actually grandfathered in from the time before the state specified where the funds must be spent, is technically earmarked for tourism purposes, although it actually funds the county’s entire industrial development efforts.
With Oneida’s occupancy tax in place, lodgers will be taxed at a total rate of 18.75% inside Oneida — including the 7% state sales tax, the 2.5% local option sales tax, the 5% county lodging tax and the 4% Oneida lodging tax — and 14.75% in areas of Scott County outside Oneida.
The only Tennessee counties without an occupancy tax are Bedford, Bledsoe, Carroll, Dyer, Grainger, Grundy, Hancock, Hawkins, Jackson, McNairy, Pickett, Smith, and Washington counties. However, in most of those counties without a lodging tax, one or more municipalities have a lodging tax.
The state’s highest effective tax rate on occupancy, which combines the state and local sales tax rates and the local occupancy tax rates, is found in Kingsport and Johnson City, at 21.75%. That includes 9.25% in sales taxes, a 5% county lodging tax, and a 7% municipal lodging tax in each city.
Scott County’s property tax burden is one of the nation’s lowest
HUNTSVILLE | Scott Countians continue to enjoy one of Tennessee’s lowest tax burdens, according to a survey by the website SmartAsset.
According to SmartAsset, a website published by Financial Insight Technology and based in New York, Scott County has the fifth-lowest tax burden in Tennessee — behind Hancock County, Johnson County, Grundy County and Fentress County, in that order.
Scott County’s neighbors also enjoy a low tax burden. Campbell County has the state’s seventh-lowest tax burden, and Pickett County has the state’s eighth-lowest tax burden. Also ranking in the Top 10 is nearby Union County, at No. 10.
Morgan County’s tax burden ranks as Tennessee’s 22nd-lowest, while Anderson County has one of the state’s highest tax burdens, ranking 81st out of 95 counties.
According to the survey, only 104 counties out of 3,143 counties nationwide have a lower tax burden than Scott County.
The findings are similar to last year, when Scott County ranked as the fifth-lowest tax burden in Tennessee and the 95th-lowest nationally when SmartAsset compiled the numbers.
Although Scott County’s national standing has slipped slightly, the local tax burden still ranks among the bottom 5% nationally.
What are the rankings based on? According to SmartAsset, a Scott County resident can expect to pay $15,742 in income tax, $2,100.10 in sales tax, $616 in property tax and $181.85 in fuel tax over the course of one year.
The survey is somewhat flawed because it uses the national median household income to determine tax burdens. For example, it assumes that residents of every county in Tennessee — which is one of just eight states nationally without a state income tax — will pay $15,742 in federal income tax. In fact, based on Scott County’s median household income, the average Scott County resident can expect to pay around $690 in federal income tax — far less than in Wilson County, where the average person can expect to pay just over $9,500 in federal income taxes. Nevertheless, the rankings balance out somewhat once one considers that the average Scott County resident pays a higher percentage of their income on things like sales taxes and gasoline taxes than residents in wealthier communities where the median income is greater. The national median household income is estimated to be about $83,000. The Scott County median household income is estimated to be about $37,000.
For property taxes, SmartAsset estimated that Scott Countians pay less than all but six other Tennessee counties. The county’s property tax burden ranks 243rd nationally out of 3,143 counties.
That ranking was determined by comparing the median property taxes paid in each county. Scott County’s actual property tax rate ranks middle of the pack in Tennessee, but property values are lower here than in some other counties, resulting in less property taxes paid.
According to SmartAsset, Fentress County has the lowest property tax burden in the state, at $519, and Pickett County has the sixth-lowest, at $606. Campbell County ranks just behind Scott County, at $651.
As a whole, Tennessee’s tax burden ranks better than almost any state in the country. Other states that perform well in terms of a low tax burden include Texas, Nevada, Wyoming, North Dakota and South Dakota. Florida isn’t far behind.
Just to the north, SmartAsset determined that McCreary County’s tax burden ranks as the sixth-lowest in Kentucky, but only the 711th-lowest nationally. That’s due largely, of course, to Kentucky’s state income tax.
The website determined that McCreary County has the ninth-lowest property tax burden in Kentucky, with the average homeowner paying $565 annually in property taxes.
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New details indicate trash transfer station at former Hartco site was never close to reality
ONEIDA | As details have continued to come to light regarding a much-discussed trash transfer station at the former Hartco flooring plant in downtown Oneida, it appears that such a facility was never as close to becoming reality as rumors that have circulated in recent days seemed to indicate.
In a statement to the Independent Herald Thursday afternoon, one of the current owners of the former Hartco plant — Brewco — said that it met with landfill developer Knox Horner but had committed to nothing and was not close to doing so.
“As for the rumors about a trash transfer station, Brewco did meet with Knox Horner some time ago as a professional courtesy,” the company said in its statement. “However, we made no contractual commitments and had no intentions of moving forward without more clarity and due diligence. The process never proceeded to any formal agreement nor was approval sought or given by relevant governmental entities.
“While there have been ongoing discussions about the rail spur for a transfer station, those conversations were initiated and led by Mr. Horner — not Brewco,” the statement added.
Brewco entered into a lease-purchase agreement on the Hartco site two years ago with the Industrial Development Board of Scott County.
As part of the process of building a transfer station at the former Hartco site, Horner would have had to have gone through a series of steps: obtaining permission from Norfolk-Southern, reaching an agreement with Brewco, and because of Brewco’s lease-purchase agreement with the Industrial Development Board of Scott County, reaching an agreement with the IDB.
Greg Jeffers, chairman of the IDB, confirmed to the IH Thursday that no proposal from Horner had ever reached the body.
“It never, ever came before the ID Board,” Jeffers said. “No proposal was made to the ID Board because it hadn’t got that far. It would have had to go through so many other steps.”
It appears to have been doubtful that the transfer station proposal would have made it past Norfolk-Southern. In the unlikely event that it made it as far as the IDB, it does not appear that it would have passed that step, based on comments that have been made to the IH.
Horner, who is in the process of purchasing approximately 700 acres of property adjacent to the existing Volunteer Regional Landfill at Bear Creek for the purposes of leasing a new Class I landfill, told the IH Tuesday morning that he had reconsidered the transfer station after listening to public comments made at Monday’s Scott County Commission meeting.
In an email Thursday afternoon, Horner reiterated that the transfer station at the former Hartco site is no longer on the table.
Brewco likewise said that it had been informed by Horner that he’s no longer interested in exploring that option.
“Brewco was informed this week by Mr. Horner that they have no interest in future discussions for use of this property,” the company said. “Brewco also wishes to clarify that it has no interest in any future Garbage Transfer Station or in the existing and proposed landfills. It is totally focused on the development of the Tibbals property.”
In its statement, Brewco said that it will continue to work with the IDB for a positive future at the Hartco site.
“Brewco entered into a lease with option to purchase agreement on land currently owned by the Scott County Industrial Development Board two years ago,” the company said. “Together, Brewco and the IDB have been focused on developing the site into something that benefits the community — such as warehouse space, office buildings, assisting local industry growth, and tourism-related uses. Because the site was historically an industrial area, Brewco is also working hand-in-hand with the IDB and TDEC through the Tennessee Brownfields Program to ensure the land is environmentally safe and responsibly redeveloped. Brewco would NOT welcome any operation that would jeopardize our environmental efforts or become a public nuisance to the development of existing tenants or neighbors.”
Editor’s Note: This is just the latest of several stories that have been posted this week related to a proposed second landfill in Oneida. Find previous stories here, here and here.
Scott County receives clean audit report from the state, one of just 14 counties to do so
HUNTSVILLE | Scott County is one of just 14 counties across Tennessee that received a clean audit report from the state comptroller’s office for the fiscal year ending June 30, 2024.
Tennessee Comptroller of the Treasury Jason Mumpower announced the clean report, which was also found in Campbell, Bedford, Cannon, Dickson, Grainger, Houston, Loudon, Putnam, Robertson, Sevier, Stewart, Unicoi and Weakley counties.
The comptroller’s office audits 91 of Tennessee’s 95 counties annually, reporting on weaknesses, deficiencies or areas of noncompliance within government operations.
“These 14 counties have demonstrated a commitment to sound financial management and internal controls,” Mumpower said. “A clean audit is a significant achievement that requires diligence and accountability. Congratulations to the elected officials, leaders and staff members in these counties for their hard work.”
Among the 91 counties audited by the comptroller’s office, a total of 260 findings were found in fiscal year 2024, an average of 2.86 findings per county.
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The Weekend
☀️ Weather: The long holiday weekend will start with beautiful weather: sunny skies and a high of about 67° on Friday. But things will deteriorate as the weekend progresses, and unfortunately it looks like a wet Memorial Day. There’s an 80% chance of rain and thunderstorms both Sunday and Monday, and rain will remain likely into Tuesday. Check out our daily Eye to the Sky updates on our Facebook page — published each morning at 7 a.m. on the dot.
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📅 Community Calendar
• Saturday: The Scott County Farmers & Crafters Market will be open from 9 a.m. until 1 p.m. — rain or shine. The market is located at 600 Scott High Drive, Huntsville.
• Saturday: Fourth Saturday night worship services will be held at Straight Fork Baptist Church (7 p.m.), and Antioch Baptist Church (6:30 p.m.). For more information, see our Church Directory at ihoneida.com.
• Saturday: The U.S.S. Tennessee Battleship Memorial Museum will be open Saturday, May 24 from 10 a.m. until 4 p.m. Admission is free. The museum is located on the campus of Scott High as part of the Museum of Scott County complex.
• Sunday: Celebrate Recovery, a 12-step program designed to help with addiction, co-dependency and domestic abuse, will be hosted by Fire & Purpose Ministries from 5 p.m. to 8 p.m. at 27192 Scott Highway in Winfield. There will be food, fellowship, praise and worship. Childcare is provided.
The Community Calendar is presented by Citizens Gas Utility District. Citizens Gas operates natural gas distribution pipelines in portions of Scott and Morgan counties. Visit citizensgastn.com.
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◼️ Monday morning: The Daybreaker (news & the week ahead)
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