HB1193/SB0753 – Would reduce state’s share of local option sales tax revenues. – Wright/Briggs
Taxes, Sales - As introduced, reduces from 1.125 percent to 0.5 percent the percentage the department of revenue keeps from the proceeds from the local option sales tax to defray the state's expenses in administering, collecting, and remitting local sales taxes. - Amends TCA Title 67, Chapter 6.
Favor: In view of the state's surplussed budget as opposed to strapped local budgets, the fast-growing cities and counties are in much greater need of additional funding to keep up with demands caused by exponential growth. Rural counties often have opposing challenges; a shrinking of revenue as their residents leave for greener pastures.
TLRC Observed Process
This bill was placed "behind the budget", meaning that the the state's appropriated budget did not include enough to cover the fiscal note assigned. It therefore, was not heard in committees and was eventually abandoned.