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Press Releases

Grocery Sales Tax Cut Signed by Haslam

Press release from the Office of Tennessee Gov. Bill Haslam; May 21, 2013:

VONORE – Tennessee Gov. Bill Haslam today traveled to Monroe County to sign legislation to reduce the state portion of the sales tax on groceries from 5.25 percent to 5 percent.

Haslam held a ceremonial bill signing at Sloan’s Grocery in Vonore, Tenn.

In 2012, the General Assembly passed and the governor signed the first step in reducing the state portion of the sales tax on groceries, lowering the rate from 5.5 percent to 5.25 percent.

“We’re lowering taxes and balancing the state budget by managing conservatively, making strategic investments in our priorities and finding new ways to make government more efficient and effective,” Haslam said. “The sales tax on food impacts all Tennesseans, and I applaud the General Assembly for passing this important piece of legislation this year.”

The bill, SB 199/HB 193, was introduced by the governor and was one of two tax cuts passed by the legislature and signed by Haslam this year as the state continues its work toward providing the best customer service at the lowest possible cost to taxpayers.

Senate Majority Leader Mark Norris (R-Collierville), House Majority Leader Gerald McCormick (R-Chattanooga) and state Rep. Ryan Haynes (R-Knoxville) sponsored the bill.

Haslam included $23 million in the FY 2013-2014 state budget to fund the legislation. The legislation goes into effect July 1, 2013.

The reduced tax rate does not apply to prepared foods such as a meal at a restaurant, candy, alcoholic beverages or tobacco.

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Featured Tax and Budget

Tax Cuts on Food, Inheritances Pushed by Haslam

Gov. Bill Haslam Tuesday afternoon introduced his 2012 legislative agenda, announcing that he will push for two tax cuts during this year’s Tennessee General Assembly session, which also began Tuesday.

The tax cuts come by way of the governor’s proposals to raise the state inheritance tax exemption from $1 million to $1.25 million and to lower the state’s portion of the sales tax on food from 5.5 percent to 5.3 percent.

A family of four spending $884 a month on groceries would save about $21 a year under the Haslam tax cut.

The proposals were something of a surprise move from the governor, who has said as recently as last month that such cuts would be unlikely this year due to the state’s tight financial situation.

The proposed tax cuts are just the beginning for the governor, who said the cuts were the first step toward his goals of lowering the food tax to 5 percent and raising the inheritance tax exemption to $5 million, to match the federal exemption mark, by the end of his first term.

Estimates are that the two-tenths of a percent decrease in the food tax will lower the state’s revenues by $18 million. For the change in the estate tax, that number is $14 million.

“I just think it’s important, if we’re to lower taxes for Tennesseans, that’s the only way to really touch every Tennessean in a significant way,” Haslam said of his decision to push for a food tax cut.

Lt. Gov. Ron Ramsey last month told reporters that he “wasn’t a big proponent” of cutting the food tax and that it probably wasn’t wise, anyway, given that sales taxes are the main revenue source for state and local governments. While Speaker Beth Harwell stood by the governor’s side at his press conference Tuesday and voiced her support for Haslam’s agenda, Ramsey did not attend but released a brief statement.

“I am excited to work with Gov. Haslam to move Tennessee forward toward more jobs, less spending and smaller government,” he said. “The governor has chosen his priorities well. This is a solid agenda that our unified Republican majority can proudly stand behind.”

Ramsey conceded that his priorities differ from the governor’s in some areas, but said he’d support Haslam’s agenda.

“I’ve always been in favor of reducing the estate tax, and so that’s one of his priorities too,” the Blountville Republican told TNReport. “So, I think if you look at the package from top to bottom, it’s something I agree with and can’t wait to help him pass it.

“[The food tax cut] has not been a priority of mine, I will agree with that, because that’s something I feel like is a stable base of revenue that we have. But reducing it from 5.5 to 5 over three years – that’s fine. It’s not like we’re trying to do away with the sales tax on food,” he said.

Haslam’s agenda did not include a push for a cut in the Hall income tax on investments, which has been a goal for some Republicans, including Ramsey.

“That fight’s not over yet either, OK,” Ramsey said. “That’s just not one of [Haslam’s] priorities.”

As for raising the state inheritance tax exemption, Haslam said he believes the move will create more revenue for the state in the long term by keeping people in the state.

“There are a whole lot of people who used to live in Tennessee who don’t anymore because it’s cheaper to die in Florida,” he said. “And I can tell you a whole lot of people who spend less than half of their year in Tennessee to avoid that estate tax specifically.”

Speaking to reporters after Haslam’s remarks, Harwell expressed her full support for the governor’s agenda and was particularly pleased with the proposed change to the estate tax. She said she was glad to see the state raising the exemption to a reasonable level and called Tennessee’s current exemption “way out of line.”

Among the other items in the legislative package were proposals to give individual school districts more autonomy with regards to salary schedules and average class size and changes to the state’s hiring and employment practices. The governor also proposed legislation that would restructure 22 state boards and commissions, which he called the “first step in an ongoing comprehensive review process.”

Andrea Zelinski contributed to this report.

Categories
Press Releases

MTSU Poll: Tennesseans Don’t Like Teacher Tenure; Split on Eliminating Collective Bargaining; Favor Wine in Grocery Stores

Press Release from the Middle Tennessee State University Survey Group, March 2, 2011:

Obama would lose to a Republican opponent, but his low approval rating has stabilized

MURFREESBORO, Tenn. – Tennesseans take a dim view of teacher tenure but show no consensus on whether to do away with collective bargaining power for teacher unions, the latest MTSU Poll finds.

Fifty-four percent of state residents choose the statement, “Tenure makes it hard to get rid of bad teachers” as most representative of their viewpoint, while 29 percent choose the alternative statement, “Tenure protects good teachers from being fired without just cause” as most indicative of what they think. Sixteen percent say they don’t know, and the rest decline to answer.

Meanwhile, 37 percent of Tennesseans favor “eliminating the ability of teacher unions in Tennessee to negotiate with local boards of education about teacher salaries, benefits and other employment issues.” But a statistically equivalent 41 percent oppose such a move, and a substantial 22 percent are undecided.

“Compared to public opinion about teacher tenure, public opinion about collective bargaining for teacher unions seem to be still taking shape in Tennessee,” said Dr. Ken Blake, director of the MTSU Poll. “The people most likely to have any opinion at all on the collective bargaining issue are also, based on other measures in the poll, the ones most likely to be politically active and politically knowledgeable. They probably are creating a framework for the debate and soon will start contending with each other for the support of those who are undecided.”

Conducted Feb. 14 – 26, 2011 by Middle Tennessee State University’s College of Mass Communication, the telephone poll of 589 Tennessee adults chosen at random from across the state has an error margin of plus or minus four percentage points at the 95 percent level of confidence. Full results are available on the poll’s website, www.mtsusurveygroup.org.

The poll also finds President Obama currently trailing whoever the Republican 2012 presidential nominee might be. Thirty-one percent of Tennesseans say they would vote for Obama if the election were held today, but a 48 percent plurality say they would vote instead for “his Republican opponent.” 14 percent say that they don’t know who they would vote for at this time, and 6 percent volunteer that they would vote for neither candidate.

The downward slide in Obama’s approval rating among Tennesseans seems to have leveled off, though, according to Dr. Jason Reineke, associate director of the MTSU Poll.

“The president’s approval rating stands at 39 percent in Tennessee, a possible uptick from his 35 percent approval rating in our Fall 2010 poll,” Reineke said. “But, of course, he’s still down quite a bit compared to his 53 percent approval rating in the Spring 2009 MTSU Poll.”

In other findings, three in four Tennesseans considers illegal immigration a “somewhat” or “very” serious problem, and a 42 percent plurality describe as “about right” the new Arizona immigration law’s requirement that police making a stop, detention, or arrest must attempt to determine the person’s immigration status if police suspect the person is not lawfully present in the country. Another 25 percent say such a law “doesn’t go far enough,” and 28 percent say it “goes too far.”

Additionally, 55 percent characterize as “about right” the Arizona law’s requirement that people produce documents proving their immigration status if asked by police. Twenty-three percent say that aspect of the law doesn’t go far enough, and 17 percent say it goes too far.

Meanwhile, closing the Tennessee’s projected budget gap could prove politically difficult for state lawmakers.

A 52-percent majority of state residents think dealing with the budget gap will require either cutting important services (16 percent), raising state taxes (6 percent) or both (30 percent). Despite these attitudes, though, Tennesseans show little support for cuts to any of five of the state’s largest general fund budget categories. Only 25 percent of state residents favor cuts to TennCare, 14 percent favor cuts to K-12 education, 24 percent favor cuts to higher education, and 17 percent favor cuts to children’s services. Cuts to a fifth major budget category, prisons and correctional facilities, drew the most support (44 percent), but the figure is still well below a majority.

Asked about gun regulation, Tennesseans divide essentially evenly on whether laws governing the sale of guns should be kept at their current levels (43 percent) or made more strict (41 percent). Similarly, 45 percent of Tennesseans say they would support a nationwide law banning the sale of high-capacity ammunition clips, defined in the poll question as those that hold more than 10 bullets. But a statistically equivalent 42 percent say they would oppose such a law.

In still other poll findings:

  • Sixty-nine percent of Tennesseans favor letting food stores sell wine.
  • A 50 percent plurality think Congress should repeal the health care law.
  • Support remains high for the religious rights of Muslims.
  • Tennesseans think neither President Obama nor Congressional Republicans are doing enough to cooperate with each other.
  • More Tennesseans approve than disapprove of new governor, legislature, but many are undecided.

For over a decade, the Survey Group at MTSU has been providing independent, non-partisan and unbiased public opinion data regarding major social, political, and ethical issues affecting Tennessee. The poll began in 1998 as a measure of public opinion in the 39 counties comprising Middle Tennessee and began measuring public opinion statewide in 2001. Learn more and view the full report at www.mtsusurveygroup.org.