Measures represent largest single-year tax cut in state history
Gov. Bill Lee this week signed a series of bills into law that represent a total of $400 million in tax cuts for Tennessee families and businesses. The most significant is a three-month grocery tax holiday beginning August 1st.
"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 tax cuts include:
- $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.
“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.
Lawmakers cited the state's track record of fiscal conservatism as the catalyst for allowing the tax cuts.
“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.