There is a proposal on the November 6th, 2018 election ballot is asking the citizen of the county to allow the County Government to start taking yet another 1/2 cent for every dollar that someone spends in this county. They claim that because of the current 8.5% tax currently on the books, every time that we buy something in the county that ends in an odd dollar amount we are paying and extra $.005 to the State of Tennessee and that the state doesn’t return that extra $.005 (caused by rounding) to the county or city government.
Well this is partly correct and partly wrong.
Right – We we make a purchase that ends in an odd dollar amount, thanks to computer rounding we are paying an extra $0.005 with each transaction.
Wrong – The extra $0.005 never makes it to Nashville. It stays in the bank account of the business that collects sale tax for the state. The way that accounting software works and the way that the electronic tax forms request amounts, the amount of sales to be taxed is worked out on the total amount of sales revenue (not individual sales), then the amount of sales tax due to be paid to the state is calculated on the that whole amount.
Comanpany collects $100,035 in Sales for the quarter to be reported. The total number of sales was 1578. Of these sales 789. That would mean that on half the sales there would have been an extra $0.005 collected by the seller. That would mean that the seller collected a whopping $3.94 extra above what they were required to collect.
The State of TN would collect the 8502.98 and the seller keeps the $3.94.
Now Johnson County Commissioner want us to pay an extra 0.5% on every transaction.
What does that do to the same seller’s numbers above?
Sales of $100,035 would cause the seller to collect $9003.15 and 500.18 would go to Johnson County.
So instead of collecting just the $3.94 in rounding difference the county would be collecting $500.18.
Right now we as individuals are paying and extra $0.005 per transaction but only if the amount ends in an odd dollar amount. With the new tax we will be paying an extra $0.005 for each and EVERY dollar that we spend.
|Sale $:||Current Tax Rate:||Amount Collected:||Extra Collected:||Proposed Tax Rate:||Difference Collected by New and Old Tax Rates:|
Now I wouldn’t mind paying a few extra 10ths of a percents with each purchase, but not if that means I get no releif from all the other taxes that I am being forced to pay to the county in order to live in this beautiful area.
Lose the the Wheel Tax. I already pay $120 a year for three cars that are currently tagged in Johnson County.
Reduce the County Property Tax. I pay over $400 per year for my property the is located in the City Limits as well.