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Aug 26, 2019.Indd 6,250 subscribers www.TML1.org Volume 70, Number 13 Aug. 26, 2019 A year after online sales tax ruling, are states reaping more revenues? BY LIZ FARMER Governing Magazine One year after the U.S. Supreme Court overturned a decades-old ban on states collecting sales taxes from online sellers, nearly every state has instituted a tax. The swift and relatively painless Municipal elections transition has been a strong rebuke to the argument that requiring on- line sellers to remit sales taxes to held in 11 communities 40-some states would be too cum- BY KATE COIL comer Richard Gulley and Jimmy bersome for states and sellers. TML Communications Specialists Wayne Sanders defeated incum- “It’s absolutely amazing that just bent Roy F. Partin and fellow one year in, we’ve seen that kind of Nearly a dozen municipalities challengers Mark A. Bassett and widespread geographic coverage,” across Tennessee held summer Mary Nell Hess. said Charles Maniace, vice presi- elections, including eight elections dent of regulatory analysis for the held on Aug. 1. ESTILL SPRINGS consulting firm Sovos. Almost every state has enacted laws to tax online purchases and While most candidates won Estill Springs held a municipal As of this month, the District of require remote sellers to remit a sales tax. their races outright, 10 races in election on Aug. 1 with incumbent Columbia and 42 of the 45 states Metro-Nashville will have run-off Mayor David Kelley holding onto with a sales tax have enacted laws today, calling the old precedent ington, D.C., have passed laws or elections scheduled for September, his seat over challenger James or regulations requiring remote “flawed” and a “tax shelter for busi- regulations requiring marketplace including mayoral, at-large council, McCord. sellers to remit a sales tax. The nesses.” The 5-4 decision did away facilitators to collect sales taxes on and several council district seats. Incumbent aldermen Earl remaining three states – Florida, with the notion that governments behalf of their sellers, according to Davis and Bobby Taylor will also Kansas, and Missouri – have al- can only collect sales taxes on pur- the National Conference of State COWAN keep their seats in Estill Springs, ready proposed bills, “and it is only chases made from retailers with a Legislatures. Marketplace facili- Cowan held a municipal election on fending off challengers Jack a matter of time before they are physical presence in their state. In tators are online brokers, such as Aug. 1, electing two candidates to Burke and Scott Eslick. enacted,” said the Urban Institute’s doing so, the court overturned two Amazon or eBay, that sell a third the city council. Incumbents Wil- Lucy Dadayan. previous rulings that predated the party’s goods and services. More liam Anderson Jr. and Mark Led- GREENEVILLE The action comes in response to world of e-commerce. states are expected to take similar better defeated challenger Brenda A municipal election was held in the court’s ruling in South Dakota In addition to enacting laws for action in the coming year. Kay Johnson. Greeneville on Aug. 1. v. Wayfair, issued one year ago direct sellers, 32 states and Wash- See SALES TAX on Page 9 Incumbent Buddy Hawk and DECHERD newcomer Cal Doty took the two Voters went to the polls in Decherd open aldermen seats for Green- Memphis brings together public, private on Aug. 1, electing newcomer eville’s Ward 1, defeating incum- Michael Gillespie as mayor over bent Keith W. Paxton.John F. partners to tackle blight through the courts incumbent Robin Smith and chal- Honeycutt ran unopposed and was lenger Justin Stubblefield. elected to the water commission. BY KATE COIL In the alderman race, new- See ELECTIONS on Page 4 To deal with the ongoing is- sues of blight in the community, Mayors unite across state to the city of Memphis has partnered with Shelby County, the University of Memphis Cecil C. Humphreys promote civic engagement School of Law, and several non- Tennesseans profits and community-based once led the way on organizations for a multi-faceted civic engagement, approach to blight removal through but today Volunteer the court system. State citizens vote Both the city of Memphis far less regularly and Shelby County support an than most Ameri- environmental court made possi- cans. ble through the Tennessee General Voter turnout Assembly in 1991 and able to in Tennessee con- prosecute properties found to be in sistently ranks near violation of the state’s Neighbor- the bottom of the hood Preservation of 2007. nation. The state Those working with the Mem- was ranked 50 out of 50 for voter individual guidance and facilitate phis and Shelby County Environ- turnout in 2014 and 49 out of 50 a community of practice to help mental Court and as part of the A blighted home in Memphis is demolished to make room for new in 2016. tackle common challenges and greater blight removal initiative in development. The city works with Shelby County and a joint en- When it comes to many local scale solutions. the city addressed the Tennessee vironmental court to use legal avenues that encourage property elections, turnout is particularly “When it comes to increasing Municipal League during a panel owners to either bring their property up to code or demolish it for low. civic engagement at the local lev- presentation at the annual confer- new development. Rather than bid out demolition projects, the city Less than 25 percent of eligible el, mayors know best,” she said. ence in Memphis. instead sets its own price for demolition and uses a list of rotating voters participated in recent local “We’re thrilled to help mayors Steve Barlow is a partner in contractors until they find one willing to tear down any structures elections in the state’s four largest from all parts of the state and both the Memphis-based firm Brewer for that set price. cities with Memphis seeing only a sides of the political aisle come & Barlow PLC and a staff attorney 21.9 percent turnout in 2015, Nash- together to help move Tennessee for the city of Memphis who pre- and the state legislature to face the “Here in Memphis, we have ville a 17.3 percent turnout in 2018, forward.” viously served as the president and challenges in our community. The a lot of bank-owned properties,” Chattanooga a 14.1 percent turnout At the end of the year, Think- director of the nonprofit Memphis’ policy issues we focus on include he said. “One of the challenges in 2017, and Knoxville a mere 2.6 Tennessee will share a summa- Neighborhood Preservation, Inc. tax foreclosure, code enforcement, we face is that, as a result of the percent in 2015. ry report highlighting lessons Barlow splits his time between property maintenance, and also foreclosure crisis, we have a lot of To combat this trend and share learned and success stories from handling public nuisance litigation what we call land banking. The properties that were once home- best practices for increasing civic participating communities so that in the Memphis-Shelby County state law now authorizes the forma- owner-occupied that have since be- engagement, several mayors across others might replicate what they Environmental Court and the non- tion of land banks across the state. come rental properties. The banks the state are joining ThinkTennes- achieved. profit to deal with the community’s When you form these land banks that foreclosed on these homes sold see to launch the Tennessee May- The Tennessee cohort is the blight issues. you get a little bit of a special ability them – often in bulk – to an investor ors Growing Civic Engagement first of its kind in the nation. “Neighborhood Preservation to bring together and address them who is often out-of-town and even project. Current participants represent the was born to be a policy organiza- in a sort-of quasi-governmental out-of-country landlord.” Participating mayors will iden- geographic and political diversity tion and to create policy informed way.” The city and surrounding areas tify specific actions they can take of the state and include the fol- by action,” Barlow said. “The orga- Barlow said much of the blight soon realized that legal actions to increase civic engagement, from lowing: nization does some neighborhood issues the city faces began with the were often their only recourse with deepening engagement with local revitalization programs and a lot foreclosure crisis created by the these landlords. youth by creating Mayor’s Youth • Franklin Mayor Ken Moore, of policy work at the local and state subprime mortgage crisis around “We’ve had a very intentional, Councils to convening community • Kingsport Mayor Pat Shull level. We have worked a lot with the time the Great Recession be- focused, coordinated effort to deal members to discuss the importance (2019-) and former Mayor the city of Memphis, the county, gan. See BLIGHT on Page 3 of civic participation John Clark (2015-2019), Columbia Mayor Chaz Mold- • Nashville Mayor David Bri- er, one of the youngest city mayors ley, Tennessee tourism outpaces nation with in the state, said this engagement is • Chattanooga Mayor Andy vital to raising voter turnout. Berke, $22B in travel spending,119M visitors “Our community will succeed • Columbia Mayor Chaz Mold- with an increase of interest and er, Tennessee saw 119 million participation in the political and • Memphis Mayor Jim Strick- domestic visitors in 2018, up 5.1 governmental processes, and I am land, percent from 113 million the previ- proud to join with fellow mayors • Chester County Mayor Barry ous year and hit a record-high $22 across the state who share a vision Hutcherson, billion in domestic and internation- for increased civic participation,” • Shelby County Mayor Lee al travel spending.
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