Governor Bill Haslam on Wednesday traveled to Luckey Family Farm in Humboldt to highlight the second of three tax cuts passed during this year’s legislative session and signed by the governor.
Governor Haslam held a ceremonial bill signing of HB 3760/SB 3762, which phases out the state inheritance tax during the next three years before it is completely eliminated starting Jan. 1, 2016.
The bill was introduced by the governor as the state continues its work toward providing the best customer service at the lowest possible cost to Tennesseans.
“We’re focused on making state government more efficient and more effective while reducing the cost to taxpayers,” Governor Haslam said. “Jobs are created when people invest capital. The inheritance tax is causing Tennesseans to take their capital to other states as they grow older, but businesses and family farms can’t pick up and leave. Eliminating this tax will ease the burden on family businesses and farms that are left to other generations.”
The exemption level will be lifted to $1.25 million in 2013; $2 million in 2014; and $5 million in 2015.
Governor Haslam included $14.2 million in the FY 2012-2013 state budget to fund the legislation.
In Whitwell on Monday, the Governor signed HB 3761/SB 3763, legislation reducing the state portion of the sales tax on groceries from 5.5 percent to 5.25 percent. His plan is to reduce it next year to 5.0 percent.