Tax & Accounting Blog

Tennessee Governor Seeks To Reduce Tax On Food

Indirect Tax, ONESOURCE, Sales and Use Tax January 26, 2012

Governor Haslam has announced that he is targeting the reduction of the Tennessee state sales tax rate on food purchases.  Currently, the rate stands at 5.5 percent, and he is asking for that rate to be lowered to 5.3%, with the eventual goal of getting the rate down to 5% in 3 years time.  As part of this proposal, he is also looking to gradually raise the state inheritance tax from $1 million to $1.25 million, and eventually up to $5 million.  Haslam has many proposals and ideas on the table currently, and looks to have some support behind him as well.