Additional exemptions approved for senior citizens on Hall Income Tax

Note: Information provided by Tennessee Town & City

Tennessee lawmakers approved legislation last week that raises the income exemption levels on the Hall Income Tax for senior citizens.

SB198 / HB192 increases the Hall Income Tax maximum allowable income exemption levels, for taxpayers 65 years of age or older, from $26,200 to $33,000 for single filers, and from $37,000 to $59,000 for joint filers, for tax years beginning in 2013.

Local government revenue  is estimated to be reduced by approximately $821,500 in fiscal year 2014-2015.

Many lawmakers have stated publicly that this is part of multi-year phase-out to totally eliminate the Hall Income Tax.

During TML's annual Legislative Conference in March, Rep. Charles Sargent, chairman of the House Finance Ways and Means Committee, told city officials "Over the next 10 - 12 years the Hall tax will probably end up disappearing. It's something that will be phased our over several years so everyone can adjust."