CLARKSVILLE, TN (CLARKSVILLE NOW) – The Clarksville City Council was reintroduced to a proposal to rollback $3.3 million in sales taxes for schools on Thursday night. The topic returned to council chambers after most recently appearing before the Finance Committee on Monday.

When the resolution was motioned for approval on Monday, none was offered, and the measure failed for lack of a motion. Afterward, Mayor Joe Pitts said he still planned to bring the resolution before the Clarksville City Council at their upcoming executive session meeting, which brought us to Thursday night.

| PREVIOUSLY: Proposed rollback of $3.3 million in sales taxes for schools’ stalls, discussion of ballot decision

Proposed $3.3 million resolution returns to Clarksville City Council

The last time the proposal went before the City Council was during the final reading of the FY 2026-27 budget. The council initially approved the proposal, after amending it to capture a lesser $1.35 million. After reconsideration, they voted it down and approved the final budget, which included a property tax increase.

On Thursday night, Pitts began by telling the City Council, “This resolution before you will allow us to recapture a portion of the revenue stream that was put into place in 1977. At that time, the voters approved an increase in our local option sales tax. And the city and the county, in a separate agreement, allowed the school system to keep an additional 20% of that increase.

“With our city budget constrained, obviously, by a lack of revenue to support some basic operations … I felt it was time to bring this matter to you for consideration.”

‘It is not a rejection of the public education system’

Pitts said the additional funding would be over $3.3 million per year and that it would help offset the cost of doing business in the city. “It is not a rejection of the public education system, nor are we pulling the rug out from under their budget like some have suggested,” he said. “For your information, the city contributes about 80% of the sales tax we collect in the city, to our school system. Most of it prescribed by state law, but then there is a voluntary allocation that gives more.”

Pitts also commented on the city appropriating $6 million to build sidewalks around schools. “In response to a necessary change that the school system made because a shortage in bus drivers, regarding students walking to and from school,” he said.

“We continue to deliver on that promise; there are sidewalks being constructed as we speak near St. Bethlehem Elementary School and Northwest High School. We also purchased new software to upgrade our school zone signals.” Pitts said they also continue providing schools’ crossing guards within city limits.

2026 ballot discussion, reported missing contract

Councilwoman Keri Lovato said she is in favor of the resolution; however, she has concerns associated with it. “It is time to revisit this and what that money is allocated for,” Lovato said. “I’ve gone back and forth with Mr. (Eric) Bittner quite a bit about what’s appropriate and what’s not as far as next steps.”

Lovato asked Bittner to the lectern before asking him several questions, with the first being as the resolution currently reads, is it appropriate to place on the 2026 ballet. Bittner said currently, is not appropriate.

After a follow up question, Bittner confirmed with the City Council that while they have the referendum, previous minutes listed, as well as the original resolutions, the contractual agreement between the city and the county cannot be verified at this time.

“The resolution of the county and the resolution of the city both directed for a contract to be executed, but … if it was ever executed, we don’t know because it cannot be located in the city or county records,” Bittner said.

What a legal battle could look like between the city and county

Lovato also said, “My concern is if this council were to pass this as is next week, and the county and the school board don’t agree, and we’re going to assume that they don’t, then they decide to take this to court, that $3 million is going to be locked up until a judge makes a decision, correct?”

Bittner said what could happen is the trustee could pay the city everything but the 20%. “Then, that 20% would be escrowed. This came up prior in, I want to say the 1980’s … where we had a dispute over this in the past, and I think the (disputed) money was held.”

Bittner said he believes if the money were to be escrowed, it wouldn’t be released until there is a final decision. “I expect the matter would be tried in the civil circuit court in Montgomery County, then I think it would be appealed in Nashville, by whichever party that lost,” he said. “If it were put into escrow, I think it would be held that long; how long that would be? It could be one or two years, or until either party settles the matter.”

However, Bittner said if a future effective date was implemented instead, then he believes the money would not be placed into an escrow account.

Chandler: City residents are being double taxed

Councilman Tim Chandler said back in 1977, when the agreement was approved, it was a completely different time. “If you notice the wording was originally earmarked for teachers’ salaries. I guarantee we’re at least four times more teachers now,” he said.

“I just have a hard time giving this money when, like the mayor said, the amount of sidewalks that we’ve had to put in. I’m going to back up, we didn’t have to, but we did. We saw where somebody needed help, and this city jumped in and helped. We paid for all of the school crossings, that is a large expense. You’ve got personnel, uniforms, benefits, and then the school zone lights. They are not free.”

Chandler also brought up an additional point, which he brought up previously during the FY budget process, saying that city residents are doubled taxed. He said he’s not trying to start a war between the city and county, but county residents come into the city and use parks and other city amenities, yet they don’t pay any city property taxes.

“The best-case scenario is we can have a uniformed government under one control, but we don’t have that,” Chandler said. “If you remember when you took your oath of office, you took the oath to do what was best for the City of Clarksville … it’s time for us to do this.”

Additional council, mayor comments

Councilman Jimmy Brown pointed out county residents, as well as visitors from around the state and out of state, pay sales tax when they do come into city limits. “That’s where we get our money to help offset the property taxes. So, I understand the need for it, my only thing is, personally, if we’re going to remove it from the schools, I’d rather see it done over several years.”

Councilwoman Stacey Streetman asked Pitts about an effective date of July 1, 2027, to give the county, as well as CMCSS, more time to prepare their budget in advance. “I know we need the money, I don’t disagree with that, I see both sides of the coin on every bit of this,” she said.

Pitts said anything is possible and if someone were trying to take $3.5 million away from the city, “we’d be lining up every attorney on the fourth floor to protect it, knowing how scarce resources are for us.”

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Pitts said if the City Council wants to attach an amendment to stagger or delay the effective date of the resolution, then that is the will of the body. “But where we stand, we need the money to keep moving forward.”

He also said he is open to negotiations with CMCSS and Montgomery County but the proposal has to start somewhere. “I’m leaving office in five months, and I want to make sure that city residents get what they deserve. They deserve a good school system, and they deserve a functioning city government,” he said.

Pitts also clarified if the City Council were to approve the resolution as is next week, the certified property tax rate for FY 2026-27 would not be affected since it’s already been approved by the council and submitted to the state.

What’s next for resolution

The Clarksville City Council will meet next week on Thursday, Aug. 6, to continue the conversation and discuss any possible amendments to the resolution.

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