Tennessee Senate Bill SB0529

Tennessee 2023-2024 Regular Session

• Introduced: 1/25/23

Caption

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

Impact

If enacted, SB0529 would significantly affect the treatment of certain health-related and childcare products under state sales tax law. By exempting infant formula and diapers from sales tax, the bill is designed to provide economic relief to families, particularly those with lower incomes who may face challenges in meeting the costs of necessary items for their children. This change suggests a shift in state policy towards a more family-oriented approach in tax legislation.

Summary

Senate Bill 529 (SB0529) proposes amendments to the Tennessee Code Annotated, specifically targeting sales and use tax exemptions. The primary focus of the bill is to exempt the sale or use of infant formula, diapers, and wipes designed for use by infants and children from state sales tax. The intent behind this legislation is to alleviate some financial burdens on families with young children, aiming to make essential child care items more affordable for Tennessee residents.

Sentiment

The sentiment around SB0529 appears to be largely positive, particularly among advocates for low-income families and child welfare organizations. Proponents of the bill emphasize the necessity of supporting families, particularly in light of rising costs associated with child-rearing. However, concerns may arise among fiscal conservatives regarding the potential impact on state revenue, highlighting a tension between providing relief to families and maintaining state finances.

Contention

Despite the overall positive reception, there are notable points of contention regarding the potential loss of tax revenue. Critics argue that while the intent to support families is commendable, the bill could lead to a significant decrease in funds available for public services as tax exemptions reduce overall revenue. Furthermore, discussions may arise around the effectiveness of tax exemptions as a means of supporting families versus direct aid programs that could offer more targeted assistance.