The Tennessee Legislature has passed a measure that would reduce and eventually eliminate the Hall tax on investment income. The Hall tax imposes a general levy of 6% on investment income, with some exceptions.
Lawmakers agreed to reduce it down to 5 percent before eliminating it completely by 2022.
Rep. Charles Sargent, the Franklin Republican who sponsored the House bill, said the state would lose $27 million to $28 million and local governments would lose about $14 million in the first year.
Sen. Mark Green, a Clarksville Republican who sponsored the legislation, called it a historic vote leading to elimination of the tax. But Democratic Rep. G.A. Hardaway of Memphis said he could not support the measure because his district stood to lose money.
