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Capitol Hill Update 5-25-22

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Session Highlights Review

Republican supermajority delivers tax relief for every Tennessean – The 112th General Assembly’s $52.8 billion, zero-debt budget addresses the needs of all Tennesseans while advancing Republicans’ efforts to strengthen economic development, modernize infrastructure, improve health care and build safer communities.

The Republican supermajority delivered on tax relief for Tennessee families and small businesses owners amid record-high inflation across the nation. Tennessee Republicans are committed to ensuring taxpayers keep more of their hard-earned money by providing nearly $300 million in cuts this year. These cuts include a month-long sales tax holiday on food in August, as well as the traditional sales tax holiday on clothing and school supplies before the start of school.

Sponsored by Finance, Ways and Means Committee Chairlady Patsy Hazlewood, R-Signal Mountain, House Bill 2640 provides a tax break for every Tennessean who drives a passenger vehicle or autocycle. It waives the state’s portion of annual registration fees for vehicles and motorcycles from July 1, 2022 through June 30, 2023. The savings add up to $23.75 per automobile for about 5 million registered Class B passenger vehicles in Tennessee and $16.75 for 170,000 Class A motorcycles and autocyles.

Lawmakers this year continued a multi-year commitment to eliminate the professional privilege tax. This appropriation, sponsored by Assistant Majority Leader Ron Gant, R-Piperton, removes the $400 tax physicians pay in order to practice their profession. Republicans in 2019 passed legislation eliminating the professional privilege tax for 15 licensed professions.  Another significant tax cut includes $68 million for a sales tax reduction on broadband supplies. House Bill 2608, sponsored by State Rep. Kevin Vaughan, R-Collierville, will incentivize companies to accelerate the deployment of needed broadband services to rural communities.

House Bill 1405, sponsored by State Rep. Curtis Halford, R-Dyer, supports Tennessee farmers by reducing sales tax on agricultural machinery and equipment similar to tax reductions that manufacturers currently receive. Also included is a tax break for business owners through compensation for sales tax collections. House Bill 536, Sponsored by State Rep. David Hawk, R-Greenville, establishes compensation for vendors as the state’s primary tax collectors. Vendors will collect 2 percent of the first $2,500 and $1.15 of amounts more than $2,500 to the state.

Additional cuts include an extension of tax cuts on gun safes and eliminating taxes, sponsored by State Rep. Mike Sparks, R-Smyrna, and on the sale of gold and silver bullion, sponsored by State Rep. Bud Hulsey, R-Kingsport.

As always, I am truly humbled and honored to be your voice on Capitol Hill. If there is ever any issue I can assist with, please reach out to my office by calling 615-741-2190 or emailing me at [email protected].

 

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