NASHVILLE –Senate Democrats are calling on state lawmakers from both parties to come together and stop the massive over-collection of taxes from Tennesseans.
The state collected an excess of $338 million in tax revenues that it isn’t spending for the fiscal year that ended June 30, according to the Tennessee Department of Revenue.
“This is your government, collecting more of your money than it can spend,” Senate Democratic Leader Jim Kyle said. “We have heard a lot of talk about tax relief, and now it’s time for them to deliver.”
In June alone, the state collected more than $21 million in excess sales taxes on food and other essentials.
“Higher sales tax collections are a sign that our economy is improving, but many people are still struggling,” said Senate Democratic Caucus Chairman Lowe Finney. “By providing tax relief, we can ensure everyone shares in Tennessee’s success, not just our wealthiest citizens.”
Last month, the Senate Democrats called for these increasing revenues to be put towards a further reduction of the sales tax on groceries, and a tuition freeze for the state’s higher education systems.
“Now is not the time to increase the tax on higher education,” said Kyle, “There is no reason that college students should be paying for cost increases when their government is sitting on millions of their tax dollars. We can help them and provide for an additional 1% off the food tax with these excess revenues.”