October 6th, 2011

Victory on Amazon Issue!

Yesterday, TFT shared the latest news that Tennessee Attorney General Bob Cooper ruled current laws require Amazon to collect sales tax in Tennessee, given the physical presence represented by the company's distribution centers in the state.

Today, Gov. Bill Haslam has announced a preliminary agreement with Amazon.com in which the Internet retailing giant agrees to collect sales taxes on purchases made by Tennessee consumers on Jan. 1, 2014 if Congress doesn't’t address the issue of online sales taxes by that date.

Although some details remain to be disclosed, this appears to be a huge win for tax fairness, and TFT will continue to monitor the developments as further details arise.

In the meantime, thank you to the hundreds of TFT members who mailed postcards, signed petitions, contacted your legislators, joined our Lobby Days, and reached out to Tennessee's small businesses to build support for this victory. Had Amazon received the exemption, Tennessee would have lost at least $35 million in revenue annually - revenue that is needed to ensure quality public services for all Tennesseans. This resolution also supports our small businesses in Tennessee who must collect the highest sales tax in the nation and compete with corporations receiving unfair tax breaks and incentives.

Click here to send a thank you to Gov. Haslam for his negotiations with Amazon resulting in more tax fairness for Tennessee businesses. And thank you again to our members who helped make this possible.

June 12th, 2007

We did it! First-ever cut in state food tax passes!!!

That's right... We did it! The first-ever reduction of the state's high food tax passed both houses and was signed by Gov, Phil Bredesen and went into effect January, 12t 208. As part of the budget bill that passed both chambers, the sales tax on food was be cut from 6 to 5.5%. While this is far less than TFT had asked for, it is a very positive first step that we can build as we move forward.

The local government tax option of up to 2.75% was not affected. Beginning January 1, 2008, this average rate will drop to 7.85% as the new state rate takes effect, moving Tennessee to the third highest food tax, below Oklahoma and Alabama.

Our food tax is still among the highest in the nation, but this law is nonetheless a very positive step in the right direction and we applaud the legislators who helped make this possible. Clearly, much work remains to be done in the coming years to build on this victory.

Until 2002, grocery food was taxed at the same rate as non-food items. Legislators excluded groceries from the 2002 sales tax increase. This meant that for the first time, groceries were taxed at a lower rate than non-food items (6% for groceries vs. 7% for non-food items). The scheduled reduction in the food tax to 5.5% will be the first time the food tax has ever actually been reduced, a welcome change.

While the 42-cent cigarette tax increase was technically dedicated to education, no matter how they shuffle the money on paper, the end result is $40 million of the $220 million cigarette tax increase used to cut the state's high food tax. That's what we wanted... a fiscally-sound cut in the state food tax paid for with an increase in the cigarette tax so important public structures like education, health care, and environmental protection would not be hurt, and a victory TFT celebrates in our work.

Thanks to all the members and supporters who helped along the way. And a special thanks to the following organizations that all signed on in support of this successful campaign:

• League of Women Voters / Tennessee
• MANNA
• Save Our Cumberland Mountains
• Cumberland Countians for Peace & Justice
• Network for Environmental & Economic Responsibility, United Church of Christ
• AARP / Tennessee
• Tennessee Society for Respiratory Care
• National Association of Social Workers, Tenn. Chapter
• National Alliance for Mental Illness Tennessee
• Northeast TN Nurse Practitioner Association
• Common Cause/Tennessee
• Rural Health Association of TN
• Tennessee Men's Health Network
• Tennessee Conference on Social Welfare