During the recent Lincoln County Commission meeting, a significant issue emerged regarding the application of a wheel tax on dealer plates, which has not been enforced in the county for nearly 46 years. The clerk's office has decided to impose this tax on all dealer plates, a move that has raised concerns among local auto dealers and sparked a debate about its legality.

The wheel tax, traditionally applied to registered vehicles, has never before been extended to dealer plates used for resale inventory. Local dealers argue that this new application violates existing laws, specifically referencing the Private Act of 1979 and various Tennessee Code Annotated (TCA) sections. They contend that the clerk's office made this decision without the necessary approval from county elected officials or a new state law to support the change.

Dealers emphasized that vehicles in their inventory are not taxable until sold and registered by a buyer. They argue that applying the wheel tax to these vehicles, which may not even be used on the road, is unjust and contrary to the intent of state legislation. The discussion highlighted a broader concern about the implications of this tax on local businesses and the potential financial burden it could create.

In addition to the wheel tax issue, the meeting touched on other administrative matters, but the focus remained on the implications of the tax for local auto dealers. As the county navigates this contentious issue, the outcome could significantly impact how businesses operate and how tax policies are enforced in Lincoln County.

The commission's next steps will likely involve further discussions and potential actions to clarify the application of the wheel tax and ensure compliance with state laws, aiming to address the concerns raised by local dealers and uphold the integrity of county regulations.