NASHVILLE, Tenn. (April 22, 2016) – As one of the final acts of the 109th General Assembly, the Hall Tax on investment and dividend income has been set on a course for regulatory phase-out beginning calendar year 2016 with a final sunset of January 1, 2022 through SB 0047 sponsored by TN Senator Mark Green, MD (R-Clarksville).
“It has been an absolute honor to carry this historic bill and see it to passage. The Hall Income Tax is a jobs-killer and we have just killed the Hall Income Tax,” noted Green, Vice Chairman of the Senate Commerce Committee. “There will be no Hall Tax on the first day of 2022; this is as good as it gets for Tennessee seniors and for businesses who want to invest in Tennessee workers.”
The historic bill codifies the following: 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.
“I have written a full repeal of the Hall Income Tax every year I have been in office. With the assistance of my colleagues in the senate and the house, we have our victory. The Hall Tax will disappear within five years,” concluded Dr. Green of his persistent efforts since 2013.
Tennessee will soon join seven other states as completely income tax-free: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming.