Legislature votes to reduce, eventually eliminate Hall tax
NASHVILLE, Tenn. (AP) – The Tennessee Legislature has passed a measure that would reduce and eventually eliminate the Hall tax on investment income.
The Hall tax imposes a general levy of 6 percent on investment income, with some exceptions. Lawmakers agreed to reduce it down to 5 percent before eliminating it completely by 2022.
Sen. Mark Green, a Clarksville Republican who sponsored the legislation, called it a historic vote leading to elimination of the tax. But Democratic Rep. G.A. Hardaway of Memphis said he could not support the measure because his district stood to lose money.
Rep. Charles Sargent, the Franklin Republican who sponsored the House bill, said the state would lose $27 million to $28 million and local governments would lose about $14 million in the first year.
