2023 Pork Report highlights tax issues in Tennessee
NASHVILLE, Tenn. (WKRN) — Wasteful utilization of federal money and increased property taxes were some of the key takeaways for the 2023 Pork Report, authored by the Beacon Center of Tennessee each year.
The 18th edition of the report was released this week, pointing out “offensive examples of wasteful spending” across the state. Some of the items highlighted in this year’s report include the large property tax increases approved over the last year and taxpayer subsidies approved by state and local officials.
In-N-Out Headquarters
When In-N-Out, the iconic fast food chain known for its Double Doubles and Animal Style fries, announced plans to establish in Franklin, the chain also said it would locate a new headquarters for its Eastern operations in Williamson County. The investment in Tennessee was then met with economic matches from both the state of Tennessee and the Williamson County Commission.
The Tennessee Department of Economic and Community Development is reportedly giving $2.75 million to In-N-Out as a tax incentive, and the Williamson County Commission is also offering its own $2 million gift for the location.
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“No one is more excited than the Beacon team about the addition of In-N-Out restaurants and corporate headquarters in the Middle Tennessee area, but we have a real problem with the government subsidizing the insanely profitable California chain,” the report reads.
While the chain CEO said he fell in love with Franklin and Williamson County, county officials “decided to use tax dollars to sweeten the deal despite the county being in debt,” the report states.
The Beacon Center said governments should “stop picking winners and losers by subsidizing private businesses at the expense of taxpayers.”
“Instead of lowering taxes or improving the business climate, government leaders decided to make cheap fast food an expensive venture,” the report said.
Property Taxes
The report said the state’s lack of a property tax cap has left Tennesseans feeling the “burden of huge increases in their property tax bill.”
Citing significant increases in Rutherford, Greene, and Lincoln counties, the report said there was “no limit on how high local governments can go when it comes to raising property taxes.”
Rutherford County approved a 16% increase in property tax rates, while Lincoln County raised them by 37%. The largest increase cited in the report was from just outside Chattanooga, where Red Bank raised property tax rates 52%.
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“All across the state, local governments, both rural and urban, are passing massive property tax hikes instead of getting their financial health in order,” the report states. “Even small increases tied with sky-high assessments leave residents with less of their hard-earned dollars.”
The Beacon Center suggests state lawmakers offer the same protections to Tennesseans that 46 other states offer their residents: property tax caps.
ESSER Fund Waste
When the COVID-19 pandemic shuttered schools for months, the federal government stepped in to pass the Elementary and Secondary School Emergency Relief Fund (ESSER). The funds were meant to address learning loss as a result of the pandemic and the safe return to in-person classes, but the Pork Report found some local school districts opted to use the funds for unrelated purposes.
“This year, it was uncovered that some school districts chose to disregard their internal policies around how to appropriate relief funds, with unauthorized bonuses going to positions that have nothing to do with teaching children, such as directors and administrators,” the report said.
Some school districts were found to have used the ESSER funds for payroll purposes, including hiring new teachers or giving bonuses to faculty and administrators.
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According to the report, less than 62% of the $3.5 billion given through the pandemic to Tennessee school districts was spent as of September.
To view the full report, click here.
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