Governor signs Tennessee Works Tax Act
JACKSON, Tenn. — Thursday, Gov. Bill Lee signed the Tennessee Works Tax Act, the single largest tax cut in the state’s history.
This will help provide more than $400 million in savings for Tennessee families and businesses while supporting future economic growth.
The legislation includes a three-month grocery tax holiday beginning August 1, lasting until October 31.
“We commend Gov. Bill Lee and the Tennessee General Assembly for thinking about the working people and all families in Tennessee. They will be commended for taking such action,” said Brad Hurley, the President of the Carroll County Chamber of Commerce.
One West Tennessee resident gave his thoughts on this new act.
“I’m excited about it. I’m quite sure it will be helpful to a lot of people at this time with the prices the way that they are. So yeah, I’m very excited about it. I think that it will be a helpful thing to have,” said Larry, a local shopper.
Here is what else to expect with this new act being signed:
- $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
Lastly, it provides foundation for supporting Tennessee’s continued economic growth, aligning the state with more than 30 states by adopting “single sales factor” apportionment for franchise and excise tax.
According to Senate Majority Leader Jack Johnson, the Tennessee Works Tax Act will provide more growth opportunities for businesses and financial relief for families on everyday expenses.
You can find more news from across the state here.