MEMPHIS, Tenn. — The Shelby County Clerk’s Office, collected over $8.7 million throughout last year as a result of last year’s $25 wheel-tax increase, falling short of funding goals for Regional One hospital renovations and two new high schools.
This is according to updated and corrected monthly revenue reports from Shelby County Clerk Wanda Halbert, released Tuesday by County's Trustee Regina Newman and approved by the Tennessee Comptroller’s office.
“I don’t know where the Wheel Tax goes because we know it ain’t going on roads," Shelby County driver Claudia told ABC24. “I don’t know how it got so bad. It doesn’t seem to be any accounting, accounting in the sense that this is going here, and this is going here.”
The Shelby County Clerk's Office is the second-highest revenue generator in the county.
Their updated reports show a tax revenue grand total of more than $56 million raised from last July to February of this year. About $8.7 million of that came from the $25 wheel tax increase that went into effect last year.
That money was supposed to help with the debt servicing for Regional One renovations and two new high schools in Frayser and Cordova. But at this point in the year, the county was hoping to be closer to $12 million collected. That leaves the county about $3 million short of its goal.
So, as of now, the wheel tax is not generating enough revenue. It's not that these projects will not happen, but the county may have to look at other sources to make up the difference, which will be determined during the budget process. By law, the county must have a new budget by July 1.