Tax News
. . . a democratic government is the only one
in which those who vote for a tax can escape the obligation to pay it. Tocqueville
Bredesen unsure of which deep budget cuts to make
Governor Phil
NASHVILLE, Tenn. (AP) – Now that Gov. Phil Bredesen has completed hearings on potential budget cuts at state agencies, he’s preparing to craft a spending plan that could incorporate a range of severe reductions.
As part of the Democratic governor’s call to plan for up to 9 percent cuts, department heads presented proposals that included freeing thousands of prisoners, slashing health benefits for TennCare enrollees and declining to cover the cost of inflation and growth at Tennessee’s schools. wmctv.com – 11/25/2009
Report says Tennessee’s tax system among nation’s most regressive
The Tennessee tax system is the fourth most regressive among the states, with lower-income families paying a higher portion of their income in state and local taxes than do more affluent households, according to a national study released Wednesday.
When all of Tennessee’s state and local taxes are considered, the study found that Tennessee families earning less than $17,000 per year pay 11.7 percent of their income in state and local taxes, compared to 3.1 percent paid by households earning $414,000 or more, the top 1percent.
The analysis was compiled by the Washington-based Institute on Taxation and Economic Policy, a nonprofit, nonpartisan research group that examines government tax and spending policies. ITEP favors tax systems that distribute the burden equally across income groups. Commercialappeal.com – 11/19/2009
Tennessee Has the Highest Sales Tax in the Country
Tennessee has the highest combined state and local sales tax rate in the nation, the Tax Foundation reported today.
The average combined state and county sales tax rate in Tennessee is 9.41 percent. By comparison, the combined state and local sales tax rate averaged 7.02 percent in Georgia and 6.15 percent in Alabama.
Bristol speedway doesn’t have to pay $397K tax
NASHVILLE, Tenn. (AP)—A judge in Tennessee has ruled Bristol Motor Speedway does not have to pay $397,000 in taxes for broadcast revenue it made on NASCAR races.
The speedway challenged the assessment last year, claiming the state Department of Revenue was illegally taxing the track by claiming NASCAR was paying the track for a service.
Speedway officials also argued that television rights are intangible and that any money derived from the sale of them is not subject to Tennessee sales or business taxes.
Chancellor Ellen Hobbs Lyle in Nashville agreed in an order unsealed Friday that the television rights are intangible and not taxable.
She also said the broadcast rights are more like a joint venture between NASCAR and the speedway. YAHOO Sports – 10/16/2009
Tennessee tax collections fall again in September
Tennessee revenue collections for September fell 5.7 percent to $920.9 million compared to the same period last year.
Collections were $41 million below budget for September, the second month of the fiscal year and second month in the year state revenue has seen overall negative growth. Memphis Business Journal – 10/12/2009
Speaker Emeritus Naifeh Urges Consideration of Tax Increases
Jimmy Naifeh
House Speaker Emeritus Jimmy Naifeh, after listening to a discussion on the need for continuing budget cuts in state government, urged consideration of tax increases as an alternative Thursday.
“No one has got the backbone or the guts to even talk about revenue enhancement,” declared Naifeh during a meeting to brief House leaders on the status of the state budget as tax collections continue to fall.
Naifeh gave a review of past state sales tax increases, most recently in 2002, and noted they have historically come about every eight years. But his call to consider increasing taxes now got a generally cool reception. Humphreys - Knoxnews.com – 10/14/2009
Bredesen Says 5 Years to Recover from Recession
Governor Phil
In a letter to Sen. Bob Corker and Rep. Bart Gordon, Gov. Phil Bredesen says that Tennessee state government will need a decade to “dig our way out” of financial setbacks caused by the current recession.
State employees and teachers, he says, can expect five years without a pay raise. Tom Humphreys – Knoxnews.com -10/8/2009
Tennessee cities spend millions lobbying
Tennessee cities, counties and other public agencies, including Nashville Electric Service and Metro Nashville, have spent $5.3 million over the past three years on registered lobbyists to monitor legislation and push important initiatives, according to the libertarian Tennessee Center for Policy Research.
The group, a frequent critic of government spending, says governments lobbied to increase their power to tax and spend without oversight from the public. The group also said government lobbying is wasteful because elected officials could have done the same tasks. Tennessean.com – 9/16/2009
The “Tennessee Modernization and Economic Stimulus Act” deceptive at best
A bill introduced by Tennessee state senator Tate in march of this year called the Tennessee Modernization and Economic Stimulus Act is nothing like it seems to read.Under a smoke screen title, this bill was to set the stage for another round of attempts by Tennesseans for Fair Taxation to bring a state income tax to Tennessee.
After at least two other attempts to bring this to a vote during the summer, in the Saturday, August 29, 2009 edition of the Knoxville, News Sentinel, Tennesseans for Fair Taxation are renewing the call for an overhaul in the state’s tax structure. Examiner.com – 9/2/2009
Tennessee Taxes Among Best for Retirees
Tennessee is considered as one of the better states for retirees when it comes to taxes, according to a state-by-state analysis published by Kiplinger.com.
The Volunteer state ranks high because it has no broad-based income taxes — which means Social Security benefits, IRA distributions and pension income are not taxed. Nashville Business Journal – 8/29/2009
Memphis Taxpayers Pay Property Taxes Twice to Support Schools
“We’ve already paid our property taxes to the county for educating all of our children anyway,” Collins said. Yet Memphians pay again for city schools on their city tax bill.
“Memphians are paying twice for a service that everyone else is paying once,” Flinn said. “Germantown, Lakeland, Arlington, Bartlett they all pay for county schools on their county tax bill.”
Council members say no other city in all of Tennessee pays twice and the repercussions go beyond a tax increase. WMCTV.COM – August 20, 2009
First Two Items in Report by Tennessee Center for Policy Research on Effects of Current Health Care Bill are Costly to Tennesseans. TCPR – 8/19/2009
1. The bill will cost the average person $460 more in premiums each year.1
2. As many as 114 million Americans may lose their current coverage if the bill passes.
Nashville Scene Reader says Congressman Jim Cooper Wrong on Health Care
If Jim Cooper really believes that, tell him I have some ocean front property in Las Vegas I’d like to sell him. He can’t possibly be that naive!
It has been my personal experience with corporate America that if a company reduces its expenses for any reason (such as not having to pay for employee health care), the greedy things gleefully grab the saved money and put it in their own pockets. They do not pass it on to either employees or customers. Look at the banks that got bailed out and are using the money to pay out multimillion dollar bonuses with it! NashvilleScene.com – August 18, 2009
Tenn. hits historic low in sales tax growth
Tennessee Finance Commissioner Dave Goetz said Tuesday that overall revenues in July, the 12th month in the 2009 fiscal year, were $61.8 million less than the state budgeted.
Sales tax collections were $81.3 million less than the estimate for July and under collected by $687.9 million for the entire 2009 fiscal year.
The general fund was under collected by $47.5 million, and the four other funds were under collected by $14.3 million. WKRN.COM – August 11, 2009
Tax-free deals in Tennessee worth millions
“Customers are actually more than willing to come in and make bigger purchases,” said Darius Williams, customer solutions manager at Best Buy in Gallatin. Customers were buying not only computers but also accessories such as photo printers. Even computers that didn’t qualify for tax-free status, like most Apples, were selling. The Tennessean – August 10, 2009
Tax on Illegal Drugs Ruled Illegal by Supreme Court
The Tennessee Supreme Court ruled Friday that a state law taxing illegal drugs — dubbed the “crack tax” — is unconstitutional. The court found in a 3-2 decision that the law exceeds the state’s taxing power because it isn’t a tax on “merchants, peddlers and privileges.” But the court also ruled that the law didn’t violate constitutional protections against self-incrimination, leaving open the possibility that the General Assembly could develop a new tax on drugs that would be constitutional. Tennessean.com – July 24, 2009
Governor Bredesen Concerned About Healthcare Reform Costs
Governor Phil Bredesen, a Tennessee Democrat, said he feared Congress was about to bestow “the mother of all unfunded mandates.’’ “Medicaid is a poor vehicle for expanding coverage,’’ said Bredesen, a former healthcare executive. “It’s a 45-year-old system originally designed for poor women and their children. It’s not healthcare reform to dump more money into Medicaid.’’ Boston.com- July 20, 2009
Unemployment Tax Increased and Benefits Extended
The legislature revised the unemployment insurance program Tuesday, raising taxes on employers and expanding benefits for workers who lose their jobs. For the unemployed, the bill provides a new benefit of $15 per dependent under age 18, up to a maximum $50 per week, in additional unemployment pay. The current maximum benefit is $300. If Tennessee’s unemployment rate remains high (as set by a federal formula), the bill extends eligibility for jobless benefits by an additional 20 weeks to a maximum of 79 weeks. The unemployment rate in April was 9.9 percent.
It also allows people who work at least 20 hours per week to become eligible. The bill now goes to Gov. Phil Bredesen, whose administration helped negotiate it, to sign into law. It is funded with $141 million in federal economic stimulus funds, which officials believe will be exhausted in five to six years, and an increase in unemployment taxes paid by employers. The tax hike, or surcharge, is six-tenths of 1 percent, levied on the first $9,000 in wages and salaries per employee. The current taxable wage base is the first $7,000. The Commercial Appeal – June 3, 2009
Ways the State of Tennessee could save some money
Rep. Stacey Campfield, candidate for State Senator, lists cost saving ideas:
1. Sell, lease or close all the state golf courses that are not making money. $2.3 million. I hear one is planning a major renovation that will put it deeper in the red.
2. Stop construction on the party bunker until more money comes it. Some people suggested to just fill it in with dirt. Cant say I really against the idea much.
3. Cut funding for the arts and non profits and planned parenthood. About $8 million there. I like the arts but if it quality it will be able to stand on its own.
4. Cut funding for the study of earthquakes. that is over a million dollars in state money alone a year. They have been studying them for going on 30 years. I think we know enough for now.
5. Freeze all non emergency travel.
6. Opt out of the federal highway gas tax. It is optional and if we opt out and keep the gas tax at its current level the state will have more money then what it gets from the fed.
7. This one I must say is about my favorite. Just off the 10th amendment resolution several of us have been talking about how we give money to the fed we don’t need to give them. They are only entitled to money from products made in Tennessee but sold outside of Tennessee. Tennessee News Platoon – June 2, 2009
Nashville home prices falling faster
Nashville Business Journal – May 27, 2009
Tax Records Show Rise in Million Dollar Homes (Memphis)
The Commercial Appeal – May 25, 2009
Appraisals find neighborhoods of Shelby County homes in decline (Memphis)
The Commerical Appeal – May 25, 2009
Legislation Could Put Foreclosures In Future Reappraisals
Memphis Daily News – May 19, 2009
Tennessee tax revenue down 9% in February
Nashville Business Journal – March 6, 2009
Rutherford Co. residents could see property tax hike
WKRN.COM – May 1, 2009
10,000 Dispute Property Tax Assessments (Nashville)
WSMV.COM – May 15, 2009
Legislative Subcommittee Attempts to Increase Gasoline Tax
Knoxnews.com – April 20, 2009
Property owners confuse reappraisal with tax increase
Hendersonville Star News - Tennessean.com- April 22, 2009
Property value records lacking (Knoxville)
Assessor: Old software to blame for incomplete data on appeals
Knoxnews.com – May 26, 2009
Unreasonable Tax Reappraisals (Chattanooga)
The Chattanoogan.com – Opinion – January 23, 2009 -
Round 2 for reappraisal appeals to begin
Times Free Press – timesfreepress.com – May 25, 2009 (Chattanooga)
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