$412M Tax Cut Headlines Tennessee Bills Becoming Law On July 1st
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The Center Square [By Jon Styf] –
Many of the laws passed during the recent Tennessee Legislative session will go into place July 1, the beginning of the new fiscal year, including a $412 million tax cut.
That cut includes $272.8 million toward a three-month grocery tax holiday between Aug. 1 and Oct. 31 along with changing the state franchise and excise business taxes to single sales factor taxes like 32 other states.
The law also creates a two-year pilot family leave tax credit will be created for businesses that gives employees from two to 12 weeks of paid leave, providing at least 50% of normal wages over that period.
“These bold tax cuts will provide more growth opportunities for businesses and financial relief for families on every-day expenses,” said Senate Majority Leader Jack Johnson, R-Franklin. “Tennessee is 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.”
Another bill puts $194 million worth of school safety grants in place along with a requirement that schools keep doors locked at all times while students are present and requires school safety plans to be in place.
A few of the July 1 laws are also being challenged in court, including a teacher minimum pay increase that goes along with an end to the teacher option for automatic withdrawal of professional dues such as those for the Tennessee Education Association.
“These pay raises will help recruit and retain talented teachers and mitigate teacher shortages. I look forward to continuing our work to support Tennessee teachers.” said Sen. Bill Powers,R-Clarksville, who sponsored the bill.
The TEA sued to block that portion of the bill, saying it violates a single-subject requirement for bills, the details weren’t included in the bill’s caption and doesn’t disclose the bill repeals the Professional Educators Collaborative Conferencing Act, the state’s negotiation law.
Another bill being challenged in court changes the makeup of the Metropolitan Nashville Airport Authority board. The Federal Aviation Administration says it will continue to recognize the current board, not a new one, while Metro Nashville’s lawsuit on the matter is pending.
July 1 also will begin a new tax structure for Tennessee’s mobile sportsbooks, becoming the first state to tax sports gambling based on gross wagers at 1.85% of all bets.
In May, the new law would have cut the state’s taxes collected from $7.1 million to $5.2 million.
About the Author: Jon Styf, The Center Square Staff Reporter – Jon Styf is an award-winning editor and reporter who has worked in Illinois, Texas, Wisconsin, Florida and Michigan in local newsrooms over the past 20 years, working for Shaw Media, Hearst and several other companies. Follow Jon on Twitter @JonStyf.
The grocery tax, while every penny helps, is really a joke to me. We are a retired couple, so if we spend $400/month on groceries (we buy in bulk and garden to keep our expenses reasonable), we “get” to save about $40. Over three months that makes $120. That’s barely 2-3 tanks of gas. I perceive it as crumbs falling from the rich man’s table. While TN is giving millions away in tax cuts to corporations, has billions in their coffers and is pouring money into a stadiums and other things that the common man can’t even afford to visit because of the cost of food and fuel. Our gracious overlords are patting us on the heads like good little komrades and filling up our gas tanks a few times. Just my opinion.
That about sums it up! Good comment.
MOM you hit the nail on the head, and on here they add TENNESSEE has the lowest tax of most states. AND THAT IS A JOKE ALSO, TAXES in our country have gotten so bad, you cant afford to live in our own country. TAX BREAK MY FOOT what we need is a 1776 TAX REVOLT, and the money they tax you is just wasted. HOW many billions have we sent to the UKRAINE, and they borrowed the money to send it. BIDEN pulls out of a war we should not have been in and leaves billions of our dollars in a failed pull out. AND we keep electing a bunch of LAWYERS that the only thing they know how to do is ARGUE. AND here we have a TAX break on food, when it should not be TAXED AT ALL. AND her is a kicker for you, they don’t like people who smoke, so they try an tax them to death. A PAKE OF NEWPORT cigarettes 11.00 dollars, when the back use to be like 65 cents. WHERE did the rest of the money end up??? WE ARE FOOLS for paying these outlandish TAXES
Yes, I think the first comment is good, too. Just throw a few crumbs to the the peasants! Meanwhile, Corporate Welfare like that Ford debacle and the Football Stadium in Nashville drain our tax dollars for their Corporate Enterprises. It is time for the General Assembly to stop the Corporate Welfare and leave those endeavors to Private enterprises. For God & Country
If they really want to give us a tax break. Reduce our property taxes that would really help most people. Instead most counties in Tennessee are raising the tax rates. Like the other comment stated they spend billions on corporations and to built sports stadiums. Who really benefits from that? Also the state proudly touts all the time that they have billions in surplus. How about giving some of that BACK to us the taxpayers. I know that will never happen. They just throw little morsels at us and basically say there we are giving you a tax break. Thank you master we are so ever grateful. Just pathetic. The state of our country is just sad. We have the uniparty at all levels of our government, two their justice system and good is evil and evil is good.
PSALMS 71:3 NIV
Be my rock of refuge, to which I can always go; give the command to save me, for you are my rock and my fortress.
In God we trust not government or man.
Have a blessed day.
You have no idea how good you have it in Tennessee. Try being grateful about life instead of seeing negativity. If they gave nothing you wouldn’t have had anything to complain about
Dee you need to get your head out of the sand. Open your eyes and look at our country. It’s people like you who just comply with everything and let your freedoms be taken from you. Does your paycheck go as far as it did three years? Tennessee boasts that they have billions in surplus. Most counties in Tennessee are going to raise their tax rates this year. Do you own a home? Because if you do. You will be paying more in taxes. Real people are struggling to make ends meet. And you say stop complaining. Inflation is out of control. But I know my God is control. In God we trust not government or man.
Dee you have blessed day.