Tennessee – House calls for $100 M sales tax holiday, delays ending tax on interest

Finance leaders in Tennessee’s House of Representatives unveiled their version of a state budget Monday night, making significant cuts and taking out bonds while proposing a $100 million sales tax holiday.

A series of temporary sales tax breaks, which would apply during certain dates later in the summer, would serve to entice Tennesseans to buy cars on Labor Day weekend. It would also add an additional weekend of tax-free back-to-school shopping and spur more eating out in restaurants for a weekend in July, House Republicans said Monday.

The proposed $100 million toward sales tax holidays is not included in the Senate’s budget.

Rep. Charlie Baum, R-Murfeesboro, who is an economics professor at Middle Tennessee State University, expressed doubt about the effectiveness of the one-time sales tax breaks.

For more information: Tennessean

by natalie allison
June 16, 2020