Gov. Lee signs ‘single largest tax cut’ in Tennessee history into law
Lee said this act will provide over $400 million in savings for Tennessee families and businesses.
NASHVILLE, Tenn. (WSMV) - Governor Bill Lee has announced the signing of the Tennessee Works Tax Act, which is the “single largest tax cut in state history.”
Lee said this act will provide more than $400 million in savings for Tennessee families and businesses while supporting future economic growth. This legislation also includes a three-month grocery tax holiday which is slated to begin on Aug. 1.
The Tennessee Works Tax Act, according to Lee, totals over $400M in tax cuts, here’s a look at the breakdown of this act:
- $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
“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,” Lee said in a media release. “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.”
Copyright 2023 WSMV. All rights reserved.