CARTA: Lookout Mountain ordinance could mean 'economic demise' of the Incline Railway

Added: 2026-05-26

[00:00:00]CARTA leaders left stunned tonight as they wrestle with the future of the Incline Railway following ordinance passed by Lookout Mountain Commission.

[00:00:07]One of those ordinances would drastically impact CARTA's ability to function as a public transportation authority. Officials on Lookout Mountain would impose a $1 tax per passenger.

[00:00:17]That ordinance would also limit the Incline's hours of operations and number [music] of daily passengers. CARTA leaders say most of their operating revenue comes through the Incline. They estimate these limitations would cut that revenue by 2/3. Now, CARTA's board says they are forced to come up with backup plans. NewsChannel 9's Lily Butler brings us the latest on this developing story. [music] Lily.

[00:00:41]Yeah, Josh and Kim, you can see the long-standing tourist attraction behind me that CARTA says they're worried about you losing if a new ordinance passes.

[00:00:50]But this 131-year-old Incline Railway is not the only thing at risk as CARTA officials say that it pays for their public buses.

[00:01:00]The CARTA Board of Directors say Lookout Mountain Town Commission passed an ordinance earlier this month that would put heavy operating restrictions on the Incline and charge passengers more. They say under the ordinance the Incline would be required to close hours before normal operations and they would have to limit passengers to 500 a day. Right now, CARTA says they have around 1,600 daily during busy season. Passengers would be footing the bill too with a new tax of $1 per ticket if this ordinance passes second reading.

[00:01:30]That would put us in a position that we're not able to cover our operating costs.

[00:01:39]Which would mean that if you're not able to cover your operating costs, it's not sustainable. It would close down.

[00:01:48]CARTA officials say they want to speak with Lookout Mountain Town Commissioners just to talk about the repercussions and if this ordinance moves forward, they say Carta would consider a lawsuit.

[00:01:59]Reporting live in St. Elmo, Lilly Butler, NewsChannel 9.