HEADLINES : Tennessee

Tenn. lawmakers discuss bills to reduce sales tax

CBS Money WatchFebruary 3, 2012

NASHVILLE, Tenn. - The Republican sponsor of a proposal to reduce the sales tax on groceries in Tennessee said Wednesday he's open to working with Democrats who have a similar measure if it would help the legislation's passage.

The bill by Rep. Glenn Casada of Franklin was placed behind the budget in the House Finance Subcommittee on Wednesday. It will be revisited if any money is left after the state's budget is set.

Republican Gov. Bill Haslam has included $2 million for lawmakers to appropriate on items not in his agenda, which means many proposals may not get funded.

Casada's legislation would reduce the sales tax from 5.5 percent to 5 percent, while the Democrats have a plan that would drop it a half-cent more.

Haslam's budget contains a proposal to reduce the sales tax to 5.3 percent. Casada said he applauds the governor's effort, but would like to see the tax reduced further. He estimates his proposal would cost $42 million.

 

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