published Thursday, April 12th, 2012

Tennessee House votes to phase out inheritance tax, reduce sales tax

NASHVILLE — The state House voted today to begin phasing out Tennessee’s inheritance tax — often called the death tax — in 2016 and reducing the sales tax on groceries.

The inheritance tax legislation, which passed 88-8, increases to exemption for high-dollar estimates from $1 million to $1.25 million in its first year. State government would see $14.1 million less revenue as a result. When the tax is entirely eliminated, it will cost the state an estimated $94.1 million annually.

The sales tax bill passed 96-0. Both measures now move to the Senate.

Reducing the sales tax on groceries from 5.5 percent to 5.25 percent would result in a $22 million loss to the state.

Republican Gov. Bill Haslam intends to come back next year with another quarter-penny reduction, bringing it down to 5 percent at a total cost of $44 million over the two-year period.

For complete details, see tomorrow’s Times Free Press.

about Andy Sher...

Andy Sher is a Nashville-based staff writer covering Tennessee state government and politics for the Times Free Press. A Washington correspondent from 1999-2005 for the Times Free Press, Andy previously headed up state Capitol coverage for The Chattanooga Times, worked as a state Capitol reporter for The Nashville Banner and was a contributor to The Tennessee Journal, among other publications. Andy worked for 17 years at The Chattanooga Times covering police, health care, county government, ...

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