Tennessee House Bill HB0658

Tennessee 2023-2024 Regular Session

• Introduced: 1/26/23
• Refer: 2/1/23

Caption

AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 6, Part 3, relative to sales and use tax exemptions.

Impact

The enactment of HB 0658 would have a direct impact on state revenue through the temporary removal of sales tax for the specified products. Advocates argue that this measure would provide significant relief to families, especially those with low or moderate incomes, by making necessary items more affordable. By encouraging purchases of infant-related products without the added tax burden, the bill aims to promote better access to essential childcare supplies.

Summary

House Bill 0658 aims to amend the Tennessee Code by establishing sales tax exemptions on specific items, namely infant formula and diapers, for a defined period starting July 1, 2023, to June 30, 2024. The bill specifies that the exemptions apply to retail sales of these products designed for use by infants and children, targeting financial relief for families purchasing essential childcare items. This legislative measure reflects a growing recognition of the financial burdens parents face and the need for supportive tax policies aimed at reducing the costs of raising children.

Sentiment

The general sentiment surrounding HB 0658 appears to be supportive, particularly among parent advocacy groups and other stakeholders focused on child welfare and family health. Legislators backing the bill have expressed that such exemptions are a step in the right direction toward easing the financial strain on families. However, there may be concerns from those who prioritize state revenue and the implications of tax exemptions on budget allocations for other public services.

Contention

Despite the favorable sentiment, discussions around the bill may include contention regarding the potential impact on state revenue and whether the tax exemptions could lead to budgetary constraints for essential state programs. Some may argue that while the law supports families, it also needs to be balanced with fiscal responsibilities. The discussions likely center on the trade-off between immediate fiscal relief for families and the broader economic implications for the state's budget.