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Tennessee Budget Amendment to Reduce Sales Tax On Food


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.”

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Avalara Author
Susan McLain
Avalara Author Susan McLain
Susan McLain began her career as a technical writer in technology industries such as satellite networking and medical devices. Her skills encompass technical and marketing writing, usability engineering, verification and validation testing and protocol writing, requirements development, business analysis, technical illustration/graphic design and marketing. She has owned her own business providing service to small to medium sized business and in other positions, she has been in project management, documentation and marketing. She is currently the content specialist for Avalara helping to “make sales tax less taxing.”