AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 6, relative to sales and use taxes.
Impact
The amendment brought forth by HB1175 could potentially streamline the existing regulations around sales and use taxes, potentially leading to an increase in compliance efficiency for taxpayers and businesses alike. By removing specific provisions within the tax code, it could also impact how taxes are collected and distributed at the state level. As with many tax-related amendments, stakeholders in business sectors may view these changes as an opportunity for tax relief, while others, particularly local governments reliant on these revenue streams, may express concern about the loss of dedicated funding or the effect on local economies.
Summary
House Bill 1175 seeks to amend the Tennessee Code Annotated specifically in Title 67, Chapter 6, which deals with sales and use taxes. The primary focus of the bill appears to involve modifications concerning how taxes are applied and regulated within the state. Although the exact nature of the amendments is primarily captured in deleting subsection (g) of Section 67-6-393, the implications of such changes could significantly influence tax policies and revenue collection for the state. The motivations behind the bill and its expected outcomes, however, warrant further examination within legislative discussions.
Contention
Notably, discussions surrounding this bill may revolve around the balance of power between state and local governance. As changes to taxation affect both the economic landscape and local funding mechanisms, proponents will argue that broader state control is necessary for uniformity and efficiency. Conversely, opponents of the bill might raise alarms about the implications for local taxes that support community services and infrastructure, fearing that state amendments could lead to financial shortfalls for municipalities and a diminished capacity to address local needs.