Taxes, Income - As enacted, reduces Hall income tax from six percent to five percent; expresses legislative intent that the tax be statutorily reduced by one percent annually beginning with the first annual session of the 110th general assembly; eliminates the tax for tax years beginning on or after January 1, 2022. - Amends TCA Title 67, Chapter 2.
SB0047 has been assigned Public Chapter Number 1064 by the Secretary of State.
  • Bill History
  • Amendments
  • Video
  • Summary
  • Fiscal Note
  • Votes
  • Actions For SB0047Date
    Pub. Ch. 106405/23/2016
    Effective date(s) 05/20/201605/23/2016
    Signed by Governor.05/20/2016
    Transmitted to Governor for action.05/16/2016
    Signed by H. Speaker05/13/2016
    Signed by Senate Speaker05/06/2016
    Enrolled and ready for signatures04/25/2016
    Conf. comm. report adopted, Ayes 66, Nays 17 PNV 004/22/2016
    Sponsor(s) Added.04/22/2016
    Conference Committee report adopted, ayes 29 nays 104/22/2016
    Placed on Senate Message Calendar calendar for 4/22/201604/21/2016
    Conf. comm. appointed. ( Casada, McCormick, Dunn, Hicks, Shepard)04/21/2016
    Conference Committee appointed. (McNally, Norris, Watson, Green, Tate)04/21/2016
    Senate refused to recede from its non-concurrence.04/21/2016
    H. refused to recede from am. no. HA1241 SB004704/21/2016
    H. Placed on Message Calendar 2 for 4/21/201604/21/2016
    Senate refused to concur in H. amendment #304/21/2016
    Passed H., as am., Ayes 78, Nays 9, PNV 204/21/2016
    Am. withdrawn. (Amendment 4 - HA1254)04/21/2016
    Rec. for pass; ref to Calendar & Rules Committee04/21/2016
    H. Placed on Regular Calendar for 4/21/201604/21/2016
    Placed on cal. Calendar & Rules Committee for 4/21/201604/21/2016
    Placed on cal. Finance, Ways & Means Committee for 4/21/201604/20/2016
    Re-ref. Finance, Ways & Means Committee04/20/2016
    H. adopted am. (Amendment 3 - HA1241)04/20/2016
    Move to Heel04/20/2016
    Move to Heel04/20/2016
    Roll 10 places04/20/2016
    Roll 5 places04/20/2016
    Am. withdrawn. (Amendment 2 - HA1224)04/20/2016
    Am. withdrawn. (Amendment 1 - HA1176)04/20/2016
    Subst. for comp. HB.04/20/2016
    Rcvd. from S., held on H. desk.04/20/2016
    Sponsor(s) Added.04/19/2016
    Engrossed; ready for transmission to House04/19/2016
    Passed Senate as amended, Ayes 31, Nays 1, PNV 104/19/2016
    Amendment withdrawn. (Amendment 4 - SA0511)04/19/2016
    Amendment withdrawn. (Amendment 3 - SA0496)04/19/2016
    Amendment withdrawn. (Amendment 2 - SA0447)04/19/2016
    Amendment withdrawn. (Amendment 1 - SA0446)04/19/2016
    Senate adopted Amendment (Amendment 5 - SA1034)04/19/2016
    Sponsor(s) Added.04/18/2016
    Placed on Senate Regular Calendar calendar for 4/19/201604/18/2016
    Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 11, Nays 0 PNV 004/18/2016
    Placed on Senate Finance, Ways, and Means Committee calendar for 4/18/201604/14/2016
    Action deferred in Senate Finance, Ways, and Means Committee to 4/18/201604/13/2016
    Placed on Senate Finance, Ways, and Means Committee3 calendar for 4/13/201604/13/2016
    Action deferred in Senate Finance, Ways, and Means Committee to 4/13/201604/12/2016
    Sponsor(s) Added.04/11/2016
    Placed on Senate Finance, Ways, and Means Committee3 calendar for 4/12/201604/06/2016
    Sponsor(s) Added.03/21/2016
    Re-refer to Senate FW&M Comm.02/24/2016
    Re-refer to S. FW&M Comm. 02/24/2016
    Placed on Senate Regular Calendar calendar for 2/24/201602/22/2016
    Senate Reset on calendar for 2/24/201602/22/2016
    Placed on Senate Regular Calendar calendar for 2/22/201602/18/2016
    Senate Reset on calendar for 2/22/201602/17/2016
    Placed on Senate Regular Calendar calendar for 2/17/201602/11/2016
    Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 11, Nays 0 PNV 002/09/2016
    Placed on Senate Finance, Ways, and Means Committee calendar for 2/9/201602/03/2016
    Re-refer to Senate FW&M Comm.02/03/2016
    Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 8, Nays 0 PNV 104/21/2015
    Placed on Senate Finance, Ways, and Means Committee calendar for 4/21/201504/17/2015
    Sponsor(s) Added.04/16/2015
    Action deferred in Senate Finance, Ways, and Means Committee to 4/16/201504/15/2015
    Placed on Senate Finance, Ways, and Means Committee calendar for 4/15/201504/09/2015
    Sponsor(s) Added.03/26/2015
    Refer to Senate Finance, Ways & Means Committee w/recommend, as amended03/24/2015
    Placed on Senate FW&M Revenue Subcommittee calendar for 3/24/201503/18/2015
    Action deferred in Senate FW&M Revenue Subcommittee to 3/24/201503/17/2015
    Placed on Senate FW&M Revenue Subcommittee calendar for 3/17/201503/11/2015
    Refer to Senate Revenue Subcommittee02/10/2015
    Refer to Senate Finance, Ways & Means Committee01/17/2015
    Passed on Second Consideration, held on desk pending committee appointments.01/16/2015
    Introduced, Passed on First Consideration01/15/2015
    Filed for introduction01/14/2015
    Actions For HB0813Date
    Comp. became Pub. Ch. 106405/23/2016
    Sponsor(s) Added.04/21/2016
    Sponsor(s) Added.04/20/2016
    Comp. SB subst.04/20/2016
    H. Placed on Regular Calendar for 4/20/201604/19/2016
    Placed on cal. Calendar & Rules Committee for 4/19/201604/19/2016
    Rec. for pass. if am., ref. to Calendar & Rules Committee04/19/2016
    Placed on cal. Finance, Ways & Means Committee for 4/19/201604/19/2016
    Rec for pass if am by s/c ref. to Finance, Ways & Means Committee04/19/2016
    Sponsor(s) Added.04/14/2016
    Placed on s/c cal Finance, Ways & Means Subcommittee for 4/18/201604/13/2016
    Action Def. in s/c Finance, Ways & Means Subcommittee to 4/13/201604/12/2016
    Sponsor(s) Added.04/12/2016
    Placed on s/c cal Finance, Ways & Means Subcommittee for 4/13/201604/12/2016
    Assigned to s/c Finance, Ways & Means Subcommittee04/12/2016
    Rec. for pass. if am., ref. to Finance, Ways & Means Committee04/12/2016
    Placed on cal. Government Operations Committee for 4/12/201604/12/2016
    Taken off notice for cal. in Government Operations Committee04/14/2015
    Placed on cal. Government Operations Committee for 4/14/201504/13/2015
    Sponsor(s) Added.04/06/2015
    Sponsor(s) Added.03/02/2015
    P2C, ref. to Government Operations Committee for review--Finance02/18/2015
    Intro., P1C.02/12/2015
    Filed for intro.02/11/2015
  • AmendmentsFiscal Memos
    SA0446Amendment 1-1 to SB0047Fiscal Memo for SA0446 (4446)  
    SA0447Amendment 2-2 to SB0047Fiscal Memo for SA0447 (4912)  
    SA0496Amendment 3- to SB0047 
    SA0511Amendment 4-3 to SB0047Fiscal Memo for SA0511 (11837)  
    SA1034Amendment 5-4 to SB0047Fiscal Memo for SA1034 (15921)  Fiscal Memo for SA1034 (15921)  
    AmendmentsFiscal Memos
    HA1176Amendment 1-1 to HB0813Fiscal Memo for HA1176 (15860)  
    HA1224Amendment 2-1 to HB0813Fiscal Memo for HA1224 (15921)  Fiscal Memo for HA1224 (15921)  
    HA1241Amendment 3- to HB0813Fiscal Memo for HA1241 (16310)  
    HA1254Amendment 4- to HB0813 

    NOTE: Each fiscal memorandum applies only to the amendment(s) identified in the memorandum. The fiscal memorandum must be matched to any amendments that have been adopted.

  • Videos containing keyword: SB0047

  • Fiscal Summary

    (CORRECTED) Decrease State Revenue - Net Impact - $43,468,500/FY17-18 $86,954,900/FY18-19 $130,445,900/FY19-20 $163,054,000/FY20-21 $164,139,600/FY21-22 $165,225,200/FY22-23 $166,310,800/FY23-24 and Subsequent Years Decrease State Expenditures - $500,000/FY24-25 and Subsequent Years Increase Local Revenue - Net Impact - $606,000/FY17-18 $1,229,900/FY18-19 $1,858,400/FY19-20 $2,319,600/FY20-21 Decrease Local Revenue - Net Impact - $28,741,600/FY21-22 $59,802,900/FY22-23 $90,864,200/FY23-24 and Subsequent Years Other Fiscal Impact - Secondary economic impacts may occur as a result of this bill. Such impacts may be realized due to changes in population or as a result of other behavioral changes prompted by the passage of this bill. Due to multiple unknown factors, fiscal impacts directly attributable to such secondary economic impacts cannot be quantified with reasonable certainty. Any change in the fiscal impact as a result of state revenue growth not exceeding three percent over the previous fiscal year will be contingent upon the specific fiscal year in which such growth was not exceeded, and the apportionment rate for local government for any such fiscal year. The fiscal impact for the bill in such instances will be significant to both state and local government; however, any such fiscal impacts cannot be quantified.


    Bill Summary

    Present law levies a six percent tax, known as the Hall income tax, on incomes derived from dividends from stocks and interest on bonds.

    Under this bill, if state revenue growth exceeds three percent over the previous fiscal year, then the rate of the Hall income tax will be reduced by one percent for the following calendar year and all subsequent calendar years, unless further reduction is warranted because of another increase in revenue greater than three percent. If the tax is reduced to a rate of three percent, then all subsequent reductions to the rate will be in increments of 0.75 percent, pursuant to the above procedure.

    Upon the seventh reduction, the rate of the Hall income tax will become zero percent. The commissioner of revenue must certify in writing the date upon which the rate becomes zero percent. On January 1 immediately following the final rate reduction, the Hall income tax will be abolished.

    This bill requires the commissioner of finance and administration, in consultation with the commissioner of revenue, on June 15 of any fiscal year in which state revenue growth exceeds three percent over the previous fiscal year to certify the amount of the state tax revenue collected for the then-current fiscal year and notify the governor, the speakers of the senate and house, and the treasurer of the amount, including the amount of any surplus state tax revenue collected. If such a certification is made, then the above rate reduction to the Hall income tax will take place on January 1 of the following calendar year.

    Under present law, 5/8 of the revenue collected by the Hall income tax is distributed to the general fund and the remaining 3/8 of revenue is distributed to the local government from which the tax was collected.

    Under this bill, the amount of revenue distributed to the general fund will be decreased in an amount corresponding to the first four reductions to the rate of the Hall income tax. During this time, the rate distributed to local governments will remain the same. Following the fourth rate reduction, no revenue from the Hall income tax will be distributed to the general fund, and all further revenue generated by the Hall income tax will be distributed to the local government from which the tax was collected until the tax is eliminated as described above.

    ON APRIL 19, 2016, THE SENATE ADOPTED AMENDMENT #5 AND PASSED SENATE BILL 47, AS AMENDED.

    AMENDMENT #1 rewrites this bill to reduce the Hall Income Tax from 6 percent to 5 percent beginning with the tax year that began January 1, 2016, and express the legislative intent that the tax be eliminated on or before January 1, 2021, through annual reductions made by enactments of general bills beginning with the first annual session of the 110th General Assembly.

    ON APRIL 20, 2016, THE HOUSE SUBSTITUTED SENATE BILL 47 FOR HOUSE BILL 813, ADOPTED AMENDMENT #3, AND RE-REFERRED SENATE BILL 47 TO COMMITTEE, AS AMENDED.

    AMENDMENT #3 replaces the expression of legislative intent that the Hall Tax be eliminated through annual reductions made by enactments of general bills beginning with the first annual session of the 110th General Assembly. This amendment instead institutes a system for reducing the Hall Tax by one percent each fiscal year that revenue derived from taxes that are collected by the state and deposited in the general fund exceeds three percent over the previous fiscal year, beginning with fiscal year 2015-2016. The commissioner of finance and administration, in consultation with the commissioner of revenue, will be required to make the determination of whether the revenue growth exceeded three percent over the previous fiscal year. The commissioner will be required to notify the governor, both speakers, and the state treasurer of the commissioner's determination.

    This amendment authorizes the commissioner of revenue to promulgate rules to effectuate this amendment's provisions.

    On January 1 of any calendar year in which the sixth qualifying reduction occurs, the rate will be zero percent and the Hall Tax will no longer be imposed.

    This amendment maintains the legislative intent to eliminate the Hall Tax beginning on or after January 1, 2021.

    ON APRIL 21, 2016, THE HOUSE FURTHER CONSIDERED SENATE BILL 47 AND PASSED SENATE BILL 47, AS AMENDED BY AMENDMENT #3.

    ON APRIL 21, 2016, THE SENATE NONCONCURRED IN HOUSE AMENDMENT #3.

    ON APRIL 21, 2016, THE HOUSE REFUSED TO RECEDE FROM ITS ACTION IN ADOPTING AMENDMENT #3.

    ON APRIL 21, 2016, THE SENATE REFUSED TO RECEDE FROM ITS ACTION IN NONCONCURRING IN HOUSE AMENDMENT #3, AND APPOINTED A CONFERENCE COMMITTEE.

    ON APRIL 21, 2016, THE HOUSE APPOINTED A CONFERENCE COMMITTEE.

    ON APRIL 22, 2016, THE SENATE ADOPTED THE CONFERENCE COMMITTEE REPORT AND MADE IT THE ACTION OF THE SENATE.

    ON APRIL 22, 2016, THE HOUSE ADOPTED THE CONFERENCE COMMITTEE REPORT AND MADE IT THE ACTION OF THE HOUSE.

  • FiscalNote for SB0047/HB0813 filed under SB0047
  • House Floor and Committee Votes

    House moved to substitute and conform to HB0813

    SB0047 by Green - FLOOR VOTE: MOTION TO ADOPT CONFERENCE COMMITTEE REPORT 4/22/2016
    Passed
              Ayes...............................................66
              Noes...............................................17

              Representatives voting aye were: Brooks H, Brooks K, Butt, Calfee, Carr, Carter, Casada, Casada, Coley, Daniel, Doss, Dunlap, Durham, Eldridge, Faison, Forgety, Goins, Gravitt, Halford, Harwell, Hicks, Hill M, Hill T, Holt, Howell, Hulsey, Jenkins, Jernigan, Johnson, Johnson, Kane, Keisling, Lamberth, Littleton, Lollar, Marsh, Matheny, Matlock, McCormick, McCormick, McManus, Mitchell, Moody, Pitts, Pody, Powell, Ragan, Ramsey, Reedy, Rogers, Sanderson, Sargent, Sexton C, Sexton J, Shaw, Shepard, Smith, Sparks, Spivey, Swann, Todd, Travis, VanHuss, Weaver, White D, White M, Windle, Wirgau, Zachary, Mr. Speaker Harwell -- 66.
              Representatives voting no were: Akbari, Armstrong, Beck, Camper, Clemmons, Cooper, Dunn, Fitzhugh, Fitzhugh, Gilmore, Hardaway, Jones, McDaniel, McDaniel, Miller, Parkinson, Stewart, Towns, Turner -- 17.

    SB0047 by Green - FLOOR VOTE: PREVIOUS QUESTION MOTION TO ADOPT CONFERENCE COMMITTEE REPORT 4/22/2016
    Passed
              Ayes...............................................56
              Noes...............................................23

              Representatives voting aye were: Brooks H, Brooks K, Butt, Calfee, Carr, Carter, Casada, Casada, Coley, Daniel, Doss, Dunlap, Eldridge, Faison, Forgety, Goins, Gravitt, Halford, Harwell, Hicks, Holt, Howell, Hulsey, Jenkins, Johnson, Johnson, Kane, Keisling, Lamberth, Littleton, Lollar, Marsh, Matheny, Matlock, McCormick, McCormick, McDaniel, McDaniel, McManus, Mitchell, Moody, Pody, Powell, Ragan, Ramsey, Reedy, Rogers, Sargent, Sexton J, Sparks, Spivey, Swann, Todd, Travis, VanHuss, Weaver, White D, Windle, Wirgau, Zachary, Mr. Speaker Harwell -- 56.
              Representatives voting no were: Akbari, Armstrong, Beck, Camper, Clemmons, Cooper, Dunn, Fitzhugh, Fitzhugh, Gilmore, Hardaway, Jernigan, Jones, Miller, Parkinson, Pitts, Sanderson, Shaw, Shepard, Smith, Stewart, Towns, Turner, White M -- 23.

    SB0047 by Green - FLOOR VOTE: LAY ON THE TABLE MOTION TO ADOPT MINORITY REPORT 4/22/2016
    Passed
              Ayes...............................................48
              Noes...............................................33

              Representatives voting aye were: Brooks K, Butt, Calfee, Carter, Casada, Casada, Coley, Daniel, Doss, Dunlap, Durham, Eldridge, Faison, Forgety, Goins, Gravitt, Halford, Harwell, Hicks, Hill T, Holt, Howell, Johnson, Johnson, Kane, Lamberth, Littleton, Lollar, Marsh, Matheny, Matlock, McCormick, McCormick, McManus, Mitchell, Moody, Pody, Ramsey, Reedy, Rogers, Sargent, Sexton C, Sexton J, Sparks, Spivey, Todd, Travis, Weaver, White D, Windle, Zachary, Mr. Speaker Harwell -- 48.
              Representatives voting no were: Akbari, Armstrong, Beck, Brooks H, Clemmons, Cooper, Dunn, Fitzhugh, Fitzhugh, Gilmore, Hardaway, Hill M, Hulsey, Jenkins, Jernigan, Jones, Keisling, Love, McDaniel, McDaniel, Miller, Parkinson, Pitts, Powell, Ragan, Sanderson, Shaw, Shepard, Smith, Stewart, Towns, Turner, VanHuss, White M, Wirgau -- 33.

    SB0047 by Green - FLOOR VOTE: AS AMENDED PASSAGE ON THIRD CONSIDERATION 4/21/2016
    Passed
              Ayes...............................................78
              Noes................................................9

              Representatives voting aye were: Alexander, Brooks H, Brooks K, Butt, Byrd, Carr, Carter, Casada, Casada, Coley, Daniel, DeBerry, Doss, Dunlap, Dunn, Durham, Eldridge, Faison, Farmer, Fitzhugh, Fitzhugh, Forgety, Gilmore, Goins, Gravitt, Halford, Harwell, Hawk, Hawk, Hazlewood, Hicks, Hill M, Hill T, Holsclaw, Holt, Howell, Hulsey, Jenkins, Jernigan, Johnson, Johnson, Keisling, Kumar, Lamberth, Littleton, Lollar, Love, Lynn, Marsh, Matlock, McCormick, McCormick, McDaniel, McDaniel, McManus, Miller, Mitchell, Moody, Pitts, Pody, Powell, Ragan, Ramsey, Reedy, Rogers, Sanderson, Sargent, Sexton C, Sexton J, Shaw, Shepard, Smith, Sparks, Spivey, Swann, Todd, VanHuss, Weaver, White D, White M, Williams, Windle, Wirgau, Zachary, Mr. Speaker Harwell -- 78.
              Representatives voting no were: Armstrong, Beck, Clemmons, Cooper, Hardaway, Jones, Parkinson, Stewart, Turner -- 9.

              HB0813 by Green - HOUSE CALENDAR & RULES COMMITTEE:
    H. Placed on Regular Calendar for 4/21/2016 4/21/2016
              Voice Vote - Ayes Prevail

              HB0813 by Green - HOUSE FINANCE, WAYS & MEANS COMMITTEE:
    Rec. for pass; ref to Calendar & Rules Committee 4/21/2016
              Voice Vote - Ayes Prevail

              HB0813 by Sargent - HOUSE CALENDAR & RULES COMMITTEE:
    H. Placed on Regular Calendar for 4/20/2016 4/19/2016
              Voice Vote - Ayes Prevail

              HB0813 by Sargent - HOUSE FINANCE, WAYS & MEANS COMMITTEE:
    Rec. for pass. if am., ref. to Calendar & Rules Committee 4/19/2016
              Voice Vote - Ayes Prevail Rep(s). Armstrong, Camper, Fitzhugh, Mitchell requested to be recorded as voting No

              HB0813 by Sargent - HOUSE FINANCE, WAYS & MEANS SUBCOMMITTEE:
    Rec for pass if am by s/c ref. to Finance, Ways & Means Committee 4/18/2016
              Voice Vote- Ayes Prevail

              HB0813 by Sargent - HOUSE GOVERNMENT OPERATIONS COMMITTEE:
    Rec. for pass. if am., ref. to Finance, Ways & Means Committee 4/12/2016
              Voice Vote - Ayes Prevail Rep(s). Fitzhugh requested to be recorded as voting No

    Senate Floor and Committee Votes

    SB0047 by Green - FLOOR VOTE: Make Action of the Senate MOTION TO ADOPT Conference Committee Report 4/22/2016
    Passed
              Ayes...............................................29
              Noes................................................1

              Senators voting aye were: Bailey, Beavers, Bell, Bowling, Briggs, Gardenhire, Green, Gresham, Haile, Harper, Hensley, Jackson, Johnson, Kelsey, Ketron, Massey, McNally, Niceley, Norris, Overbey, Ramsey, Roberts, Southerland, Stevens, Tate, Tracy, Watson, Yager, Yarbro, Mr. Speaker McNally, Mr. Speaker Ramsey -- 29.
              Senators voting no were: Harris -- 1.

    SB0047 by Green - FLOOR VOTE: THIRD CONSIDERATION AMENDED 4/19/2016
    Passed
              Ayes...............................................31
              Noes................................................1

              Senators voting aye were: Bailey, Beavers, Bell, Bowling, Briggs, Crowe, Dickerson, Gardenhire, Green, Gresham, Haile, Harper, Hensley, Jackson, Johnson, Kelsey, Ketron, Massey, McNally, Niceley, Norris, Overbey, Ramsey, Roberts, Southerland, Stevens, Tate, Tracy, Watson, Yager, Yarbro, Mr. Speaker McNally, Mr. Speaker Ramsey -- 31.
              Senators voting no were: Kyle -- 1.

    SB0047 by Green - SENATE FINANCE, WAYS AND MEANS COMMITTEE:
    Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 11, Nays 0 PNV 0 4/18/2016
    Passed
              Ayes...............................................11
              Noes................................................0

              Senators voting aye were: Dickerson, Haile, Harper, Hensley, Ketron, McNally, Norris, Overbey, Stevens, Tate, Watson, Mr. Speaker McNally -- 11.

    SB0047 by Green - SENATE FINANCE, WAYS AND MEANS COMMITTEE:
    Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 11, Nays 0 PNV 0 2/9/2016
    Passed
              Ayes...............................................11
              Noes................................................0

              Senators voting aye were: Dickerson, Haile, Harper, Hensley, Ketron, McNally, Norris, Overbey, Stevens, Tate, Watson, Mr. Speaker McNally -- 11.

    SB0047 by Green - SENATE FINANCE, WAYS AND MEANS COMMITTEE:
    Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 8, Nays 0 PNV 1 4/21/2015
    Passed
              Ayes................................................8
              Noes................................................0

              Senators voting aye were: Dickerson, Haile, Hensley, Ketron, McNally, Norris, Stevens, Watson, Mr. Speaker McNally -- 8.