NASHVILLE (May 3) – The Tennessee Senate concluded its business on Thursday, April 28, highlighted by more than $280 million in tax cuts and financial relief to Tennesseans. State Senator John Stevens (R-Huntingdon), Chairman of the Senate Appropriations Subcommittee, was instrumental in securing some of these tax cuts. He sponsored legislation to exempt farmers from paying sales tax on items and services used for agriculture production.
“Agriculture is the backbone of Tennessee’s economy, and I am glad we can provide assistance to hardworking farmers who are dedicated to putting food on the tables of families across the region,” said Stevens. “By eliminating this sales tax, we can help small family farms stay in the family for generations by lowering costs and making it easier to turn a profit. I am very pleased to have had the privilege to sponsor the legislation that made this possible.”
The legislation, which was approved by both the Senate and House of Representatives, eliminates the sales tax on items such as building materials, repair services, labor and other expenses used in agriculture production. The tax reduction totals $2.8 million, and mirrors tax reductions that manufacturers in Tennessee currently receive.
The legislation will take effect January 1, 2023. It does not apply to tax items including automobiles, household appliances, or fuel used in vehicles that travel on public highways in the state.
Other tax cuts and financial relief that were passed this year include:
- $80 million for a grocery sales tax holiday for August 2022 to provide relief for rising inflation and cost of food
- $121.6 million to eliminate the state’s $29 license plate registration fee for one year – a financial relief that benefits only Tennesseans and not out-of-state residents who shop and do business in the state
- $9 million to remove the annual $400 professional privilege tax on physicians to continue a multi-year commitment to eliminate the professional privilege tax. In 2019, lawmakers passed legislation eliminating the professional privilege tax for 15 licensed professions.
- $68 million to reduce sales tax on broadband supplies and incentivize companies to accelerate the deployment of needed broadband services to rural communities.
- $360,000 to eliminate a tax on gold bullion and silver.