From NewsChannel 9: As long as Gov. Lee signs the bill, Tennesseans won't have to pay taxes on groceries from August through October this year.
From NewsChannel 9: As long as Gov. Lee signs the bill, Tennesseans won’t have to pay taxes on groceries from August through October this year.
This would come after the Tennessee General Assembly approved the Tennessee Works act Thursday.
HB 323/SB275, sponsored by Sen. Jack Johnson (R-Franklin), Rep. William Lamberth (R-Portland), and Rep. Mark Cochran (R-Englewood), features the a three-month grocery tax holiday and a paid family leave tax credit for those who want it.
As a whole, the act would cut more than $400 million in taxes for Tennessee residents, says the Tennessee Department of Revenue.
According to the department, families would save more than $100 in taxes if the bill is signed into law. They cite local governments would get back any tax revenues lost during the time.
Tennessee Gov. Bill Lee has not signed the act yet, but has declared his support of the legislation.
Decades of smart fiscal stewardship have enabled Tennessee to maintain a balanced budget while cutting taxes for Tennessee families and businesses. We are proud to continue that legacy this year by putting dollars back in the pockets of Tennesseans and supporting future economic growth across Tennessee, and I thank the General Assembly for its partnership to promote future growth and opportunity for our state.
The law would relieve Tennessee businesses of $150 million. For example, more than 23,000 businesses’ excise tax liability would be eliminated. Additionally, at a max of $500,000, the act would remove some business property from franchise tax liability. Moreover, nearly 150,000 Tennessee businesses would not have to file business tax anymore.
The department says the act will help Tennessee achieve more economic growth by ensuring the state embraces single sales factor allocation for franchise and excise tax.
Senate Majority Leader Jack Johnson, one of the previously mentioned bill sponsors, calls the act “bold.”
In Tennessee we are committed to low taxes, “said Senate Majority Leader Jack Johnson. “We believe that Tennessee businesses and citizens are in the best position to decide how to spend their own money, and this tax-cut proposal demonstrates that we practice what we preach. This bold plan will provide more growth opportunities for businesses and financial relief for families on every-day expenses. We are proud to be one of the lowest taxed states in the nation, and these tax cuts reinforce our dedication to being a pro-business and pro-family state with low taxes.
