HB1457/SB2649 Temporary Taxpayer Relief Act. Carter/ Watson
This bill creates the Tennessee taxpayer relief and economic recession reserve.
It establishes the allocation of over-collections and authorizes a temporary reduction in the 7 percent state sales tax rate if certain conditions are met.
It also creates a reserve to offset a possible shortfall in state tax revenue due to a temporary tax decrease in state sales tax during the month of September.
Tennessee state budget has amassed a large amount of money in its savings account. The bill would have provided for tax relief for any over-taxation of Tennessee taxpayers.
TLRC Observed Process
The bill was taken off-notice by the sponsor after conversing with the SBO.
It seems that the new federal tax reform law is going to necessitate serious restructuring of the TN budgeting process.
The convergence of this bill and the requirements under the federal tax reform would place undo burden on the state budget office.
I'm told that they encouraged the sponsors to bring the bill back next year. We will support that idea.