Taxing time, locally.

Byline: Dave Flessner and Ian Berry

Jun. 24--Even with extra help this year from the state, at least four local governments in Southeast Tennessee are planning possible tax increases in the fiscal year that begins next week.

Faced with higher costs for jails, fuel, health care and other expenses, some city and county officials say they need to raise property taxes or other fees to keep pace with inflation.

The growing appeal of Southeast Tennessee is drawing more residents -- and generating more revenue -- in many counties. But the newcomers also bring demands for new roads, schools and sewers.

Despite a budget surplus of more than $300 million for the state this year, city and county officials say their coffers haven't grown as fast from Tennessee's improving economy.

"The state has enjoyed very strong growth in excise and franchise taxes that counties don't get," said David Seivers, executive director for the Tennessee County Services Association. "County revenues are not growing as fast as those for state government, and costs for everything from asphalt to health care continue to go up substantially."

Although budgets still are being completed, county commissions in Hamilton and Polk and the City Council in East Ridge all are looking at possible property tax increases in fiscal 2007-08. Rhea County Executive Billy Ray Patton also is pushing a half-cent sales tax.

With proceeds from higher cigarette taxes and better-than-expected corporate tax receipts, the state is pumping another $290…