Tennessee Budget Amendment to Reduce Sales Tax On Food
- Apr 3, 2012 | Susan McLain
Tennessee Governor Haslam has proposed a revision to SB 3768/HB 3835, the FY 2012-2013 budget bills. Governor Haslam stated the reason way: “It is a state government’s job to provide services that citizens can’t get on their own. Our budget proposal earlier this year reflected a thoughtful and strategic process to allocate taxpayer dollars to service Tennesseans in the most customer-focused, efficient and effective way possible.” However, the new amendment “…continues that focus by making targeted investments in the short term…to restore funding for programs important to Tennesseans.”
Funding priorities include:
- $3.3 million to reduce the sales tax on food from the current rate of 5.5 percent to 5.25 percent. The original budget provided for a reduction to 5.3 percent.
- Increases for mental health programs and family resource centers across the state, local jail per diem payments, and other child health programs.
- Unemployment programs including career centers.
- $1 million for land acquisition and maintenance efforts at Radnor Lake state park in Nashville.
According to the Chattanoogan, the “…original budget proposal restored more than $100 million of a total of $160 million in cuts to core services first identified as reductions in the FY 2010-2011 budget but delayed until this year due to the use of one-time federal money. The budget amendment will include an additional $10 million of funding dedicated directly to further restoring those cuts to core services, officials said.”