Memphis voters soundly rejected a proposal for a citywide payroll tax Tuesday, defeating the measure by a 3-1 margin.
About 74 percent of voters said 'no' to the tax, which was on the ballot inside the Memphis city limits.
With all 234 precincts reporting, as well as early and absentee votes, 163,319 votes had been cast against the tax; 58,319 votes were cast in favor.
The referendum asked voters to allow the City Council to enact a payroll tax on 'certain vocations, occupations, callings and employment-related activities within the city.'
The tax would have been paid by people who work in the City of Memphis, including those who live outside the city.
Proponents of the tax, including chief council sponsor Janet Hooks, pushed it as an alternative to an inevitable city property tax hike this year, as well as a way to tax those who work in the city but don't pay city property taxes.
The proposal was criticized for being too vague and open-ended. No details on a rate or how it would be applied were proposed.
The tax generated strong opposition from local businesses in recent weeks.
The Memphis Regional Chamber organized a group called 'Coalition for a Better Memphis,' which waged a campaign over the airwaves against the tax. FedEx also urged its 24,000 Memphis-based employees to vote against it.
'I spent the day with Democrats, Republicans, black, white, rich, poor. Nobody wants the tax,' said Ken Hall, spokesman for the Memphis Regional Chamber.
'I think people are scared about where the money's going to go. ... Because there's no detail on how it's used, they have every right to be apprehensive.'
If it had been adopted, the tax likely would have faced legal challenges because of"
