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2012 Tennessee General Assembly
Tue April 3, 2012
Haslam Proposes Bigger Food Tax Cut
Tennessee Republican Governor Bill Haslam is proposing a greater reduction in the states' sales tax on groceries as part of his final amendment to his annual spending plan. Haslam says he’s included an additional $3.3 million dollars in the budget proposal to drop the state sales tax on groceries from 5.5 percent to 5.25 percent. Haslam's plan is to further reduce the tax to 5 percent in the following year. The governor also says negotiations with the Tennessee State Employees Association have resulted in agreement over a proposal to dial back civil services laws in the state. And Haslam adds that increasing the state's daily payment to local jails by $2 a day is designed to help pass his proposal for mandatory incarceration for repeat domestic violence convictions.