Tennessee Taxpayers Association

It Appears That the Various Levels of Our Government May be the Largest Users of Lobbyists in Tennessee 

There are government paid professional lobbyists, governmental association lobbyists, governmental staff members, and elected and appointed officials who are all lobbying our State Government to further governmental interests that are often adverse to the interests of taxpayers. 

Governmental lobbyists, governmental association lobbyists, governmental officials, officers, and employees are ubiquitous in the halls of the Legislature.

Why are they there?  Of course, it is usually all about the money.

Should the various governments be permitted to spend public funds to hire lobbyists to work against taxpayer interests?

NO! !

There is an obvious conflict with the taxpayers and citizens when these lobbyists are used in governmental efforts such as  1) seeking new forms of taxation  2) seeking to increase or expand existing taxes  3) seeking new or increased fees or charges against citizens  4) seeking to obtain hidden tax increases by deleting taxpayers’ rights in the taxing process and in appeals or protests  5) opposing legislation sponsored by individuals and private groups or associations which would promote fairness to taxpayers.

The conflict may even be an unavoidable one when public funds are used to pay lobbyists for any governmental purpose. 

Below is a list of single officials, cities, and counties that hire professional lobbyists.  There are numerous other government agencies and districts such as utility companies and school districts, but we don’t have to list these lobbyists to demonstate the broad use of lobbyists by our governments. 

This information was gathered from the records of the Tennessee Ethics Commission.

In addition to these directly hired lobbyists, often governments and government officials will join together in associations in order to be more effective in influencing the Legislature and/or the Administration.  In this way all the interests of governments and/or the actual officials can be represented by lobbyists.  

The largest local government associations that hire professional lobbyists are:

The County Services  Association is comprised of three other associations;  the Association of County Mayors, the Tennessee County Commissioners Association, and the Tennessee County Highway Officials Association.  

The County Officials Association is composed of County Clerks, State Court Clerks, Registers and Trustees.  

The TN Municipal League is composed of Tennessee cities and towns. 

Some of these same Associations, plus others, also have in-house registered lobbyists. 

There are also other governmental agencies and associations whose officers or directors regularly lobby legislators on behalf of their agencies or associations but have not registered as lobbyists with the Tennessee Ethics Commission.  For example:

This Assessors Association proudly proclaims on their website how well their Director has shepherded important legislation through the Legislature.

Therefore, governments, in one form or another, wield enormous power and influence through the use of lobbyists.

Taxpayers presently do not match the power of these government lobbyists, but collectively they do have the potential to far surpass them.  After all, there are more taxpayers than government officials and taxpayers can collectively afford to counter any efforts by the governments to take and/or waste our funds through direct or hidden agenda tax legislation.

Taxpayer power in government affairs is possible and can be obtained through the efforts of the Tennessee Taxpayers Association.   Join and Support.

       copyright – Tennessee Taxpayers Association – August 16, 2009

Email this post

The Tax Foundation is  a national tax research group located in Washington, DC.  Its mission is to provide citizens with information regarding taxes at all levels.  It is a nonpartisan organization and we can tell that it does a very good job.

We are sending out a partial copy of the  July 1, 2009, post on their research page, The Facts on Tennessee’s Tax Climate report.  Some of these statistics indicate that Tennessee has a favorable tax climate in many areas. 

Following is the report:

Tennessee’s State/Local Tax Burden Among Nation’s Lowest
During the past three decades Tennessee’s state and local tax burden has consistently ranked among the nation’s lowest. Estimated at 8.3% of income, Tennessee’s state/local tax burden percentage ranks 44th highest nationally, well below the national average of 9.7%. Tennessee taxpayers pay $3,160 per capita in state and local taxes.
Tennessee’s State-Local Tax Burden, 1977-Present
Other States’ State/Local Tax Burdens
Historical Chart Comparing All States’ State/Local Tax Burdens from 1977 to 2008

Tennessee’s 2009 Business Tax Climate Ranks 17th
Tennessee ranks 17th in the Tax Foundation’s State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. Neighboring states ranked as follows: Kentucky (34th), Virginia (15th), North Carolina (39th), Georgia (27th), Alabama (21st), Mississippi (19th), Arkansas (35th) and Missouri (16th).
50-State Comparison of Business Tax Climates (data only)
2009 State Business Tax Climate Index, Sixth Edition (full study)

Tennessee’s Individual Income Tax System
Tennessee’s personal income tax system consists of a flat 6% rate on exclusively dividend and interest income. No other personal income is subject to state taxation. Tennessee’s 2006 individual income tax collections were $32 per person, which ranked 43rd among states levying personal income taxes.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita

 

Tennessee’s Corporate Income Tax System
Tennessee’s corporate tax structure consists of a flat rate of 6.5% on all corporate income. Among states levying corporate income taxes, Tennessee’s rate ranks 29th highest nationally. In 2007, state-level corporate tax collections (excluding local taxes) were $183 per capita, which ranked 18th highest nationally. 
50-State Table of Corporate Income Tax Rates, 2000-2009
50-State Table of State and Local Corporate Income Tax Collections Per Capita and Per Household, 2005
50-State Table of State Corporate Income Tax Collections Per Capita, 2006

Tennessee Levies Sales Tax above National Median; Cigarette Tax among Lowest in Nation
Tennessee levies a 7% general sales or use tax on consumers, above the national median of 6%.State and local governments combined collected $1,360 per capita in general sales taxes in 2005, which ranks 5th highest nationally. Tennessee’s gasoline tax stands at 21.4 cents per gallon, ranking 34th highest nationally. Tennessee’s cigarette tax stands at 62 cents per pack of twenty and ranks 38th highest nationally. The sales tax was adopted in 1947, the gasoline tax in 1923 and the cigarette tax in 1925. 
50-State Table of Sales and Excise Tax Rates
50-State Table of State and Local General Sales and Gross Receipts Tax Collections Per Household and Per Capita, Fiscal Year 2005

Tennessee Property Tax Collections Low
Tennessee’s local governments collected $683.96 per capita in property taxes during fiscal year 2006, which is the latest year the Census Bureau published state-by-state property tax collections. Tennessee is one of the13 states that collect no state-level property taxes. Its per capita property tax collections in FY2006 rank 42nd nationally.
State property tax collections per capita by state

Federal Tax Burdens and Expenditures: Tennessee is a Beneficiary State:
Tennessee taxpayers receive more federal funding per dollar of federal taxes paid compared to the average state. Per dollar of Federal tax collected in 2005, Tennessee citizens received approximately $1.27 in the way of federal spending. This ranks the state 19th highest nationally and represents a rise from 1995 when Tennessee received $1.07 per dollar of taxes in federal spending (25th highest). Neighboring states and the amount of federal spending per dollar of federal taxes collected were: Kentucky ($1.51), Virginia ($1.51), North Carolina ($1.08), Georgia ($1.01), Alabama ($1.66), Mississippi ($2.02), Arkansas ($1.41) and Missouri ($1.32).
Comparing the amount of federal taxes sent to Washington with the amount of federal spending coming back to the state

Email this post

Each year there are Legislators who have good intentions to try to help the taxpayers get relief from unfair taxing procedures or exorbitant taxes.

The government agencies have a magnificent defense against these types of bills.  It is called a “Fiscal Note” and it is attached to each bill for all legislators to read .  A fiscal note is an estimate of what it will cost the government if the bill passes. 

Most of the estimates are way over the top and designed to kill the bill.  It works.  The Legislators collectively do not want to be responsible for breaking the government.   Of course, these bills will not do that, but the Fiscal Notes are so high that it scares them from voting for any one of these types of bills.

Some of the good bills that would have really helped the taxpayers are listed below.  However, none ever  had a chance of passing because of the high fiscal notes.

SB0082 / HB 984 – Increase Exemption on Hall Income Tax

This bill would have increased the Hall Income Tax exemption limit for persons over 65.  A single filer’s limit would increase from $16,200 to $30,000 and  joint filer’s from $27,000 to $60,000.

The Hall tax is an income tax on people who receive dividends and interest.   Some dividends and interest are exempt from the tax, but most are not.

Many retirees over 65 years of age depend on dividend and interest income.   Retirees need to keep the money to live on, yet the government just keeps on taking.  

Bill Sponsors:  Sen. Stanley and Rep. McManus

SB0046 / HB 116 – Appeals to Courts from Administrative Agencies shall be de novo.

This bill would change the system of appeals .   At the present time, the system for most agencies is Judicial Review.  This means the court can only review the record made at the administrative agency and cannot accept any new evidence,

Judicial Review system is repressive to the parties involved and enhances the powers of administrative agencies.   Courts should have the power to consider new evidence at the first level of court. In this case, usually Chancery Court.

Bill Sponsors:   Sen. Bunch and Rep. Bell

SB 0574 / HB 594 – Increase Exemption for Inheritance Tax

This bill was filed to increase the maximum exemption amount from $1,000,000 to $3,500,000 beginning with 2009.

This is a good bill, but no chance in passing because of the loss in revenue.

Bill Sponsors:  Sen. Jackson and Rep. Coleman

The next bill is an even better one.

SB 0696 / HB 1540 – Phasing Out Inheritance Tax

This completely phases out  the inheritance tax beginning with 2010 so that by 2014, there is no inheritance tax.

Bill Sponsors:  Sen. Southerland and Rep. Litz. 

SB0561 / HB 953 - Hall Income Tax Deduction for Long Term Care

This bill was worthy.   It allowed the taxpayer to deduct the cost of long term care insurance premiums.

The fiscal note for each year’s cost was $ 2,464,000 for State and $1,478,400 for local governments.

Can you imagine? 

Bill Sponsors:  Sen. Norris and Rep. Harwell

SB 785 / HB 1878 - Increase Gift Tax Exemption

This bill would have made all donees the subject to the same tax rates and would have increased the gift tax exemption to that level allowed by the Federal Government for gift tax purposes.  Presently the exemption level for the State gift tax is significantly less than the Federal gift tax exemption

Bill Sponsors:  Senator Overbey and Rep. McDaniel

SB 750 / HB 559 -  Permits voters to approve  tax rate increases by refendum.

Bill Sponsors:  Sen. J. Johnson and Rep. Kelsey

Email this post