State Senator Joey Hensley, MD, recently announced that the 114th General Assembly has concluded its 2025 session, marking a period of substantial advancements in tax relief and economic policies designed to enhance the quality of life in Tennessee. Hensley emphasized that since 2011, the General Assembly has enacted over $8.2 billion in tax reductions, a move he believes has significantly diversified the state’s economic landscape, attracted new investments, and allowed families to retain a larger portion of their earnings.
Among the notable accomplishments highlighted by Hensley is the complete repeal of the Hall income tax, which he stated has returned more than $1.8 billion to the residents of Tennessee, with particular benefits for seniors and retirees. Additionally, the elimination of the state’s death and gift taxes has provided over $1.2 billion in relief, facilitating the transfer of family farms and small businesses to future generations without the burden of excessive taxation.
The senator also pointed out that the legislature has focused on reducing everyday expenses for citizens. Since 2011, the grocery sales tax has been cut by nearly 30%, resulting in savings exceeding $1.2 billion for residents. Furthermore, the implementation of sales tax holidays on essential items such as school supplies, clothing, food, and prepared meals has contributed an additional $500 million in savings for consumers.
Hensley noted that reforms to the franchise and excise tax have been another significant area of focus. The planned repeal of the property-based minimum franchise tax in 2024 addresses long-standing concerns from the business community and is expected to provide nearly $800 million in relief, thereby fostering job creation and encouraging capital investment. In addition, lawmakers have taken steps to reduce or eliminate the professional privilege tax for various professions.
In rural areas, the legislature has approved tax exemptions and credits specifically for agriculture and farm equipment. The Tennessee Broadband Investment Maximization Act was also passed to promote broadband expansion while safeguarding local revenue streams.
Moreover, Hensley underscored the importance of the 2023 TN Tax Works package, which encompasses small business tax relief, a three-month grocery tax holiday, and various reforms aimed at enhancing Tennessee’s competitiveness for employers.
In conclusion, Hensley expressed confidence that the state’s steadfast commitment to conservative budgeting and pro-growth policies has fortified Tennessee’s economy. He assured that these principles will continue to guide lawmakers as they navigate the challenges and opportunities that lie ahead.
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