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HB 2639

Henry County - Subject to local approval, levies a severance tax on clay, titanium, and any other substance commonly recognized as a mineral not already taxed by this state; requires revenue from such tax to be used exclusively for the construction, maintenance, and repair of the county road system. -

114th Regular Session (2025-2026) Introduced by Tandy Darby

Henry County could tax mineral extraction with voter approval, dedicating all revenue to road maintenance and repair.

Signed by Governor.
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WeVote Research Nonpartisan
Bill Summary · HB 2639

Legislative bill overview

HB 2639 would authorize Henry County, Tennessee to impose a severance tax on extracted minerals (clay, titanium, and other non-taxed minerals) subject to local voter approval. All revenue generated would be dedicated exclusively to funding county road construction, maintenance, and repair.

Why is this important

This bill addresses infrastructure funding challenges by tying a new revenue source directly to road maintenance—a significant expense for rural counties. It represents a local control approach, requiring voter approval rather than imposing a statewide tax, but could affect mining operations and local development economics in Henry County.

Potential points of contention

  • Economic impact on mining operations: A new severance tax could increase operating costs for mineral extraction companies, potentially reducing investment or profitability in Henry County, which may deter industry or lead to job losses
  • Revenue predictability and sufficiency: Severance tax revenue fluctuates with commodity prices and extraction volumes, making long-term road funding planning uncertain; may not generate adequate, stable revenue for comprehensive road system needs
  • Competitive disadvantage: Adjacent counties without similar taxes could attract mining operations away from Henry County, shifting the economic burden to local residents while neighboring areas benefit without comparable contributions

Compiled from official sources — confirm details with the bill’s official record.

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