(NASHVILLE, TN), June 22, 2011 – Tennessee Governor Bill Haslam signed legislation today to give Hall Income Tax relief to senior citizens in the state age 65 and older. The ceremonial signing marked the enactment of Senate Bill 261 sponsored by Lt. Governor Ron Ramsey (R-Blountville) and Senator Ken Yager (R-Harriman), to raise the exemption levels to allow more senior citizens to qualify for relief from the tax.
“This was part of my platform when I ran for State Senate,” said Senator Yager. “I am very pleased to see it enacted into law. It will help provide tax relief 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.
“This bill had been pending before the legislature for many years,” said Yager, who is Chairman of the Senate State and Local Government Committee. “I am delighted to have sponsored its passage.”