Volunteer State News

Tennessee Works Tax Act to provide $400M in savings for families & small businesses

NASHVILLE, Tenn. – On May 11, Tennessee Governor Bill Lee signed the Tennessee Works Tax Act, the single largest tax cut in state history, to provide more than $400 million in savings for Tennessee families and businesses while supporting future economic growth. The legislation includes a three-month grocery tax holiday beginning August 1.

"Tennessee’s legacy of responsible fiscal stewardship has allowed our state to weather national economic storms while maintaining a balanced budget and cutting taxes for Tennesseans,” said Governor Bill Lee. “We thank the General Assembly for partnering with us to make the right investments for Tennessee families and businesses while supporting our state’s future economic growth and success.”

The Tennessee Works Tax Act totals more than $400 million in tax cuts for Tennessee families and businesses, including a three-month grocery tax suspension:

Tennessee Works Tax Act (SB275/HB323)

• $273 million for a one-time, three-month sales tax holiday on grocery items to direct relief for Tennessee families from August 1 through October 31
• More than $150 million in annual small business tax relief, including raising the exemption threshold for the business tax, exempting the first $50,000 of net income from excise tax and protecting the first $500,000 in property investment from the franchise tax
• $64 million to simplify tax administration and conform with the federal bonus depreciation provisions of 2017 Tax Cuts & Jobs Act, allowing businesses to more quickly recover costs and further incentivize investment in Tennessee production
• Provides foundation for supporting Tennessee’s continued economic growth, aligning Tennessee with more than 30 states by adopting “single sales factor” apportionment for franchise and excise tax

“We’re proud to partner with Governor Lee and the General Assembly to provide tax relief for Tennessee businesses and families, while also laying a firm foundation for continued economic growth in Tennessee,” said Department of Revenue Commissioner David Gerregano.

Gov. Lee appreciates the support of the General Assembly to continue our state’s history of strong fiscal stewardship and savings for Tennessee taxpayers:

“In Tennessee we are committed to low taxes. We believe that Tennessee businesses and citizens are in the best position to decide how to spend their own money, and these tax-cuts demonstrate that we practice what we preach,” said Senate Majority Leader Jack Johnson. “I applaud Governor Lee for this bold measure to provide more growth opportunities for businesses and financial relief for families on everyday expenses. We are proud to be one of the lowest taxed states in the nation, and this move to further cut taxes strengthens our dedication to being a pro-business and pro-family state with low taxes.”

“We believe Tennesseans know best how to spend their own money,” said House Majority Leader William Lamberth. “These historic tax cuts mean more money for our citizens to invest, spend and save. It provides meaningful reforms that further solidify Tennessee’s standing as the most well-managed, fiscally stable state in the nation where families and businesses thrive.”

Original source can be found here