NASHVILLE, Tenn. (WTVF) — The single largest tax cut in state history has been signed into law, providing hundreds of millions of dollars in savings for families and businesses.
The legislation, signed by Governor Bill Lee on Thursday includes a three-month grocery tax holiday beginning on August 1 and ending on October 31.
The Tennessee Works Tax Act totals more than $400 million in tax cuts which are distributed in the following way:
- $273 million for a one-time, three-month sales tax holiday on grocery items
- More than $150 million will go toward annual small business tax relief
- $64 million will go toward simplifying tax administration.
It will also provide foundation for the state's economic growth by adopting a "single sales factor" apportionment for franchise and excise tax.
