AN ACT to amend Chapter 213 of the Private Acts of 1982; and any other acts amendatory thereto, relative to the Unicoi County mineral tax.
HB2655 amends a 1982 private act governing the Unicoi County mineral tax. The bill updates the county’s severance tax on sand, gravel, sandstone, chert, and limestone by tying the rate-setting authority to Tennessee’s general mineral-tax statute and establishing a phased cap on the tax rate over time. Under the bill, the maximum tax is 15 cents per ton before July 1, 2025; 20 cents per ton from July 1, 2025 through June 30, 2030; 25 cents per ton from July 1, 2030 through June 30, 2035; and 30 cents per ton thereafter.
The bill also clarifies when the tax liability attaches, what materials are covered, and what is excluded. It states that the tax applies when the material is severed from the ground and ready for sale, regardless of whether it is processed before sale or shipped outside the county. It excludes minerals already taxed under other Tennessee mineral-tax provisions, certain limestone or lime used for agricultural purposes, and it gives the tax lien priority over other claims on the severed material and the property from which it is taken.
In practical terms, the bill affects mineral producers and property owners in Unicoi County by adjusting the local tax framework for quarrying and extraction activities. It preserves county authority to set the tax rate, but only within the bill’s specified limits and only if the Unicoi County legislative body approves the act by a two-thirds vote. The act is therefore contingent on local ratification before it takes effect for all purposes.
The overall sentiment around the bill appears strongly favorable and largely noncontroversial. It moved through committee and floor votes with overwhelming support, including unanimous committee recommendations and near-unanimous floor passage. The available record shows no committee debate or recorded opposition, suggesting the measure was viewed as a routine local tax update rather than a contested policy change.
The main point of potential contention is the tax burden on mineral extraction businesses and landowners, since the bill authorizes a local severance tax and creates a strong lien to secure payment. However, no specific objections are reflected in the voting history provided. The local approval requirement also means Unicoi County officials retain the final say on whether the amended tax structure becomes operative.
HB2655 changes the private act governing Unicoi County’s mineral severance tax by replacing the prior rate language with a schedule of maximum per-ton rates and by clarifying tax administration, liability, exclusions, and lien priority. It affects county tax law, mineral extraction operations, quarry operators, and owners of mineral rights or land from which sand, gravel, sandstone, chert, or limestone is severed. The bill is contingent on approval by a two-thirds vote of the Unicoi County legislative body, so it does not automatically alter local law unless ratified locally.
The bill appears to have broad support and little visible opposition. It received favorable committee recommendations and passed the House on consent calendar with only one no vote, then passed the final motion unanimously in the Senate. The lack of recorded committee discussion suggests the measure was treated as a routine local/private act update rather than a controversial statewide policy issue.
The only notable substantive issue is the imposition and gradual increase of the local mineral severance tax, which could be a concern for quarry operators, mineral producers, and property owners subject to the lien. The bill also gives the county legislative body discretion to set the rate within statutory caps, which may raise questions about local revenue policy and business costs. No explicit opposition, amendments, or debate are reflected in the available record, and the local ratification requirement gives Unicoi County officials the final decision.