The following is from Senator Mark Green's Facebook page. Senator Green was the sponsor the the repeal legislation.
We have passed a full repeal of the Hall Income Tax! SHARE the good news! I am honored to carry this monumental tax cut, the largest in state history. Thanks to those who helped to get this done. 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.
The Beacon Center made repealing the Hall Income Tax one of their top priorities. Here is their press release:
Beacon Statement on Elimination of the Hall Tax
“The vote to phase out the Hall Tax is the biggest victory for Tennessee taxpayers this session,” said Beacon CEO Justin Owen. “After spending much time and energy educating the public and legislators about the pitfalls of the Hall Tax, we are ecstatic that this day has finally come. We applaud legislators for their leadership, especially the bill’s sponsors, Sen. Mark Green and Rep. Charles Sargent. They realized that this tax unfairly hurts senior citizens and job creators and did the right thing to repeal it. We can now celebrate a major reduction to the tax bills of many Tennesseans who are in desperate need of tax relief.”Congratulations to Senator Green, House sponsor Jay D. Reedy, The Beacon Center and all who voted for the legislation and had a hand in advancing the cause. I hope the Governor signs it. I don't suspect Governor Haslam would veto it, but would be very disappointed if he were to do so.
Owen concluded, “More than half of the people who paid the Hall Tax make less than $75,000 per year and that just isn’t fair. We are proud that Tennessee has finally lived up to its reputation as a truly income tax-free state.”
The bill will now go to the Governor to be signed into law.