CLARKSVILLE, TN (CLARKSVILLE NOW) – During the City of Clarksville’s budget process for FY 2026-27, several discussions were held about a plan to recapture around $3.3 million per year paid by the city to the school system in local option sales taxes. The move was initially approved, then rejected by the City Council.

Now, the proposal is back on the agenda for the Finance Committee next week.

Clarksville Mayor Joe Pitts confirmed the plan to Clarksville Now on Friday. “I am proposing that the City keep the additional sales taxes that is given over and beyond what is statutorily required by state law,” he said. “We are building, or have built, sidewalks around schools, which is necessary to get students to and from school safely, enhanced school zone signals, along with the increased expense of crossing guards.”

The additional sales taxes are equal to about $3.3 million annually, equivalent to approximately 5 cents on the property tax rate, Pitts said.

Sales tax agreement dates to 1977

The portion of local option sales tax the city is looking to recapture was initially given in 1977, according to the resolution going before the Finance Committee.

Pitts first introduced the proposal to recapture the funds at the beginning of the city’s budget process in May. Shortly after, the Montgomery County Government and CMCSS voiced their objections. The legality of the proposal has been questioned ever since.

During the City Council’s special called meeting on July 9, the council initially approved the proposal, then amended 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.

Mayor Golden: It ‘undermines the budget process’

When contacted by Clarksville Now, County Mayor Wes Golden said the 1977 sales tax agreement was taken before voters through a referendum. “The people approved it with the understanding that those funds would be used to support our schools and help pay teacher salaries,” he said.

“Both Montgomery County and CMCSS approved their budgets (this year) with this funding in place and are now operating under those approved budgets,” Golden said. “The City Council approved a budget with the understanding that these funds would be in place to support our school system. Going back on that commitment undermines the budget process and the expectations of our council and residents who supported the budget based on those priorities.”

The Finance Committee will meet Monday, July 27, at 4:30 p.m. in the fourth-floor conference room of City Hall.

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