(NASHVILLE, TN), May 16, 2011 – State Senator Ken Yager (R-Harriman) today praised Governor Bill Haslam’s supplemental appropriation’s amendment which includes funds to give Hall Income Tax relief to senior citizens in the state age 65 and older. The move will allow Yager to proceed with passage of Senate Bill 261 which he is sponsoring with Lt. Governor Ron Ramsey, to raise the exemption levels to allow more senior citizens to qualify for relief from the tax.
“I am delighted Governor Haslam has included Hall Tax relief for senior citizens in his supplemental budget plan,” said Senator Yager. “This was part of my platform when I ran for State Senate; therefore, I am very pleased that it was included in the Governor’s budget. This puts the bill in excellent shape moving into the final days of this legislative session and making this tax relief closer to reality for many senior citizens across Tennessee.”
Enacted in 1929, this tax was originally called the Hall income tax for the senator who sponsored the legislation. Currently, persons over 65 with total income less than $16,200 for a single filer or $27,000 for a joint filer are exempt. Yager’s legislation increases, beginning with tax year 2012, the annual Hall Income Tax standard income exemption for taxpayers 65 years of age or older from $16,200 to $26,200 for single filers and from $27,000 to $37,000 for joint filers.
Of the individuals who pay the tax, Yager said 48 percent are age 65 and older. The increase in the income exemption will make the state more competitive in attracting retirees.
The legislature is expected to adjourn this weekend.