(NASHVILLE, TN) – Today, Tennesseans for Conservative Action, an organization promoting conservative principles, applauded the Tennessee General Assembly for passing legislation to repeal the Hall Income Tax over a period of 6 years.
Mark Braden, a founding member of the group stated that TCA had heard from thousands of Tennesseans in support of ending the Hall Income Tax. “Thanks to the thousands of conservatives across the state who signed our petition and pushed for a Hall Tax repeal. This phase-out is exactly the kind of conservative leadership that helps Tennessee stand above other states when it comes to recruiting businesses and families that help our communities prosper. ”
The tax rate will be reduced from 6% to 5%, a seventeen percent cut from the total dollars collected by the state for fiscal year 2016. The intent of the General Assembly in successive years is that the tax on investment and dividend income will be cut 1% annually, but is not bound to any specific rate reduction being charged to respond according to the economic health of each fiscal year. Furthermore, by January 1, 2022, the Hall Income Tax will no longer be collected and eliminated as a legal means of taxation in Tennessee. Meaning, it is set to sunset in as the year 2021 sunsets.
In March, TCA ran radio and digital advertisements calling for the end of the Hall Income Tax.