According to the Tennessee Department of Revenue (TDOR), the state will soon begin implementing a $400 million tax cut law recently passed by the Tennessee General Assembly.
“Decades of smart fiscal stewardship have enabled Tennessee to maintain a balanced budget while cutting taxes for Tennessee families and businesses,” said Governor Bill Lee in a TDOR release. “We are proud to continue that legacy this year by putting dollars back in the pockets of Tennesseans and supporting future economic growth across Tennessee, and I thank the General Assembly for its partnership to promote future growth and opportunity for our state.”
Of the many notable tax cut included in the new legislation, Tennesseeans will enjoy a grocery tax holiday between the months of August and October. During those three months, grocery store items will not be taxed.
Tax cuts for small businesses are also part of the new law.
“The legislation provides roughly $150 million in tax cuts for Tennessee businesses, through several changes to Tennessee’s franchise and excise tax and business tax,” according to the release. “As a result of the legislation, more than 23,000 businesses in the state will have their excise tax liability reduced to zero, as the bill exempts a company’s first $50,000 in net earnings from the excise tax. The legislation also exempts up to $500,000 of business property from franchise tax liability.”
Those who own businesses and make less than $100,000 per year will also see a reduction in taxes.
“Roughly 140,000 Tennessee businesses will no longer have to file business tax, as the legislation raises the threshold for filing to businesses with gross receipts of $100,000 or more per jurisdiction (up from $10,000),” the release says. “Local jurisdictions will be held harmless through an adjustment to the business tax state revenue share.”
“We’re proud to be able to provide much needed 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.
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Pete D’Abrosca is a reporter at The Tennessee Star and The Star News Network. Follow Pete on Twitter.
Photo “Market” by Tim Mossholder.
