CLEVELAND, Tenn. — The state has no intention of seeking a sales tax increase in cities such as Cleveland where the local option sales tax is less than the maximum allowed, state Rep. Eric Watson said Wednesday.

“It’s not only not on the back burner, it’s not on the burner,” Rep. Watson, R-Cleveland, said in a telephone interview from his Nashville office.

The concern was raised two weeks ago during a Cleveland City Council planning retreat. City Manager Janice Casteel and Finance Director Mike Keith pointed out the maximum local option sales tax allowed by state law is 2.75 percent.

The city, as well as the county, has a 2.25 percent sales tax rate.

The city concern is that a cash-strapped state government might take over that extra half-percent across the state in places like Cleveland. City Council members said if the state taps the remaining tax capacity, local governments will have to turn to property taxes for future funding needs.

Two weeks ago the City Council approved running a legal advertisement announcing its intent to consider a public referendum on the half-cent of untapped sales tax.

On Tuesday, Gov. Phil Bredesen said he has no plans for any type of tax increase in the state.

Rep. Watson said the same thing Wednesday.

“We’ve got rainy day funds for that,” Rep. Watson said. “I guarantee you no one in leadership has told them this.”

Members of the Bradley County Commission’s Finance Committee agreed Wednesday that such state action is not likely.

Committee Chairman Ed Elkins said the state cannot raise taxes only in selected places.

“They are just not going to do that,” said Commissioner Jim Smith.

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