Tennessee Increases Mineral Severance Tax Rate for Union County

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The Tennessee Department of Revenue has issued a notice that the mineral severance tax rate for Union County will increase to 20 cents per ton for sand, chert, sandstone, limestone, and gravel, effective April 1.

Why it matters

This tax increase could impact businesses and industries that rely on the extraction of these minerals in Union County, potentially leading to higher costs that may be passed on to consumers. The change also reflects the state's efforts to generate more revenue from natural resource extraction.

The details

The Tennessee Department of Revenue notice states that the mineral severance tax rate for Union County will increase from the current rate to 20 cents per ton for sand, chert, sandstone, limestone, and gravel severed from the ground. This new rate will take effect on April 1.

• The current mineral severance tax rate for Union County is in effect until March 31.
• The new 20-cent per ton rate will take effect on April 1.

What’s next

Businesses and industries that rely on the extraction of sand, chert, sandstone, limestone, and gravel in Union County will need to adjust their operations and budgets to account for the new 20-cent per ton mineral severance tax rate starting on April 1.