Impact of Recession on Local Tax Base

The Tennessee Advisory Commission on Intergovernmental Relations has completed a report on the continuing impact of the recession on the local government tax base. The report can be found on their website at this address: http://www.tn.gov/tacir/Special%20html%20Reports/slowdown.html

One sobering statistic from the report: Fifty counties in Tennessee collected less sales tax revenue in Fiscal Year 2011 than in Fiscal Year 2007. So although there has been modest growth in revenue in many counties this past year, revenues still have not rebounded to pre-recession levels in over half the counties.

The report also discusses the impact of the recession on the local property tax base, a phenomenon that has been slower to appear due to appraisal cycles.