Bill would repeal Hall Tax, make TN income tax free
NASHVILLE, TN (WSMV) -
There's a new push to repeal a little-known tax in Tennessee. And if it happens, it could make the state completely income tax free.
Every year, about 118,000 Tennesseans pay what's called the Hall Tax on income earned from investments.
That tax sits at 6 percent and accounts for less than 1 percent of the state's total income.
Now, a group of lawmakers wants to repeal the Hall Tax over the next few years. The legislators see it as the key to making the state fully income tax free and more friendly to businesses and investors who live in Tennessee.
"Getting rid of the Hall Tax is an extremely important message - not just an important thing for businesses or individuals looking to stay in Tennessee or move to Tennessee, but the rest of the states are looking at this and making decisions on following in this direction," said Grover Norquist, with the group Americans for Tax Reform.
The state first assessed the tax in 1929.
It benefits both state and local governments, so both would need to find ways to bridge the gap if it disappears.
The bill to repeal the Hall Tax will be up for discussion next week.
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Wednesday, July 23 2014 1:37 PM EDT2014-07-23 17:37:11 GMT
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