AN ACT relative to authorizing the levy of a mineral severance tax in Henry County.
HB2639 authorizes Henry County to levy a mineral severance tax on certain minerals extracted from the ground within the county, including clay, titanium, and other substances commonly recognized as minerals, subject to exclusions for materials already taxed under existing Tennessee law. The tax is tied to the maximum per-ton rate authorized under state severance tax law, and it is designed to automatically track future increases in that statewide maximum. If the statewide maximum is reduced or repealed, the county tax would remain fixed at the highest previously authorized rate.
The bill makes the Tennessee Department of Revenue responsible for administering and collecting the tax in the same manner as the state severance tax, and it imposes liability on owners or operators at the time the minerals are severed and transported. Revenues, after administrative costs, must be remitted quarterly to the Henry County Trustee and deposited into the county road fund for the exclusive use of constructing, maintaining, and repairing county roads. The act also creates a lien on severed minerals and the operator’s property, with priority over other liens, and applies existing penalty and interest rules for delinquent payments.
As a private act, the bill does not take effect automatically statewide; it requires approval by a two-thirds vote of the Henry County legislative body before becoming operative for local purposes. The bill was enacted as Private Chapter No. 47 and was approved by the General Assembly and the Governor in April 2026. Its legal effect is therefore limited to Henry County and to the local approval process set out in the act.
The overall sentiment reflected in the voting history was strongly favorable and largely uncontested. The bill advanced unanimously or nearly unanimously through committee and local adoption steps, and it passed the House on consent calendar with only one dissenting vote. No committee transcript objections are provided, and the available record suggests broad support for allowing Henry County to capture revenue from mineral extraction for road infrastructure.
The main point of contention, to the extent one exists, is the policy choice to impose a local tax on mineral extraction and to dedicate the proceeds exclusively to county roads. Potentially affected parties include mineral operators, landowners, and businesses involved in clay or titanium extraction in Henry County, who would bear the tax and compliance obligations. The bill also raises the usual private-act issue of local control versus statewide uniformity, since it creates a county-specific tax regime tied to state severance tax law.
HB2639 amends local law for Henry County by authorizing a county-specific mineral severance tax and incorporating state severance tax administration, collection, lien, and delinquency provisions by reference. It affects mineral extraction operators in Henry County and directs all net revenue to the county road fund, thereby creating a dedicated local funding source for road construction, maintenance, and repair. Because it is a private act, its operative effect depends on approval by the Henry County legislative body under the act’s local ratification requirement.
The bill appears to have been received positively throughout the legislative process. It moved through the House Private Acts Committee and House State & Local Government Committee without opposition, passed on the House consent calendar with overwhelming support, and was adopted by the local body without dissent. The voting record suggests the measure was viewed as a routine local revenue and infrastructure bill rather than a controversial statewide policy change.
There is little evidence of active opposition in the available record, but the underlying policy could be contentious for mineral producers and property owners subject to the tax. The bill shifts a portion of the economic burden of extraction to operators and secures the county’s claim through a lien, which may concern affected businesses. More broadly, private acts authorizing local taxes can raise concerns about uneven treatment across counties and the expansion of local taxing authority tied to state severance tax law.