DeKalb County Mayor Tim Stribling testified before the State House Local Government Committee last week concerning a new piece of legislation which, if passed, would exempt marina owners from paying county property taxes.

Stribling joined mayors from Henry, Benton, Humphreys and Clay counties who are concerned about a bill, filed last year by Republican State Representative Cameron Sexton of Crossville and by Republican State Senator Bo Watson of Hixson which would exclude marina owners or operators who lease property owned by the federal government from paying county personal property taxes on marina holdings. The bill stalled in committee last year, but hearings on the measure have resumed.

Stribling spoke in opposition to the bill before the State House Local Government Committee Tuesday morning, stressing that such a law would have an enormous negative impact on DeKalb and other counties.

“We have eight marinas on Center Hill Lake,” Stribling told the committee. “For us to lose this tax would amount to about two and a half cents on our property tax rate. A penny brings in about $44,000. The money we generate from the boat docks from the personal property tax is about $108,000. That money goes to our general purpose fund. The money that the Corps of Engineers gives to DeKalb County amount to about $95,000 and that goes into our landfill. To lose this tax would be a burden on the taxpayers, on the farmers, and on the working class,” the mayor said.

Stribling said that while the marinas bring people into the county, they also use county services like everyone else who pays county taxes.

“These boat docks have a tremendous value,” Stribling said. “A lot of counties would like to have what we have but they don't, and I am as proud as I can be of them. They bring in a lot of people, but they also depend on our services, our emergency services, our county fire department, our sheriff's department, our ambulance service, rescue squad, and our landfill. They all need those services. To pay a tax on personal property is no different than anyone else operating a business. I operated a car dealership business from 1984 to 2006. We paid our real estate tax, and we paid a personal property tax on our equipment inside our dealership. So this is not a tax as such that the boat dock's think they are paying to the Corps. It's a lease,” Stribling informed.

“I just want you to know that this would affect our economy,” he told the committee. “We would have to make up that two and a half cents somewhere.”

The proposed legislation would amend state law, adding subsection stating that:

 (1) If any federally owned property is leased to any taxpayer that owns or operates a marina, yacht club, dock, or similar property located on the federally owned property, and the taxpayer has entered into a payment in lieu of tax agreement with the United States or an agency of the United States, then the federally owned property, the taxpayer’s marina or similar property, and any leasehold interest in these properties, shall be exempt from taxation.

(2) As used in this subsection (f), “payment in lieu of tax agreement” means an agreement requiring that the taxing authorities receive payments or other charges directly from a lessee of the property or from any other sources on account of the property.

(3) The exemption provided under this subsection (f) shall be provided in the same manner as exemptions from taxation provided under this chapter for property owned by this state or political subdivisions and leased by private lessees making in lieu of tax payments.