Tennessee House passes tax cuts on groceries, estates

NASHVILLE, Tenn. (AP) -- The House has voted to begin phasing out Tennessee's inheritance tax and to lower the state's sales tax on groceries.

The chamber voted 88-8 on the estate tax measure Thursday, and 96-0 to cut the food tax from 5.5 percent to 5.25 percent.

Republicans hailed the estate tax cut as a way to keep retirees from moving out of state, while Democrats argued that the tax cut on groceries affects a far larger number of people.

Both measures were part of Republican Gov. Bill Haslam's legislative agenda this year.

The inheritance tax currently applies to estates worth more than $1 million, and was paid in 845 instances in the last budget year. The bill would bump that exemption up to $1.25 million next year and to $5 million by 2016.

You must be logged in to post comments.

Password (case sensitive):
Remember Me:


6450 Papermill Drive Knoxville, TN 37919 Phone - (865) 450-8888; Fax - (865) 450-8869
Copyright © 2015 WVLT-TV Inc. - Designed by Gray Digital Media - Powered by Clickability 147230325 - local8now.com/a?a=147230325
Gray Television, Inc.