Tennessee Works Tax Act to provide $400M in savings for families and small businesses

NASHVILLE, TN (SPECIAL TO WLAF) – Tennessee Gov. Bill Lee has signed the Tennessee Works Tax Act, the single largest tax cut in state history, to 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.

“Tennessee’s legacy of responsible fiscal stewardship has allowed our state to weather national economic
storms while maintaining a balanced budget and cutting taxes for Tennesseans,” said Lee. “We
thank the General Assembly for partnering with us to make the right investments for Tennessee families and businesses while supporting our state’s future economic growth and success.”

The Tennessee Works Tax Act totals more than $400 million in tax cuts for Tennessee families and
businesses, including a three-month grocery tax suspension:

Tennessee Works Tax Act (SB275/HB323)

• $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

“We’re proud to partner with Gov. Lee and the General Assembly to provide tax relief for Tennessee
businesses and families, while also laying a firm foundation for continued economic growth in Tennessee,” said Department of Revenue Commissioner David Gerregano.

“In Tennessee we are committed to low taxes. We believe that Tennessee businesses and citizens are in the
best position to decide how to spend their own money, and these tax-cuts demonstrate that we practice what we preach,” said Senate Majority Leader Jack Johnson. “I applaud Gov. Lee for this bold measure to
provide more growth opportunities for businesses and financial relief for families on everyday expenses. We
are proud to be one of the lowest taxed states in the nation, and this move to further cut taxes strengthens our dedication to being a pro-business and pro-family state with low taxes.”

“We believe Tennesseans know best how to spend their own money,” said House Majority Leader William
Lamberth. “These historic tax cuts mean more money for our citizens to invest, spend and save. It provides
meaningful reforms that further solidify Tennessee’s standing as the most well-managed, fiscally stable state in the nation where families and businesses thrive.” (WLAF NEWS PUBLISHED – 05/11/2023-2PM)