"No State Income Tax" Constitutional Amendment to be Submitted to Tennessee Voters in November 2014


On April 8, 2013, the Tennessee House of Representatives passed Senate Joint Resolution 1 by a vote of 80-8, giving final approval to a proposed constitutional amendment to ban a state income tax in Tennessee on payroll and earned personal income.   Having now been approved by two successive General Assemblies, the proposed constitutional amendment must be submitted to voters during the next gubernatorial election, which will be held in November 2014.
The resolution would amend Article II, Section 28 of the Tennessee Constitution to add language to explicitly prohibit the General Assembly from levying, authorizing or otherwise permitting any state or local tax upon payroll or earned personal income or any state or local tax measured by payroll or earned personal income.   The proposed amendment would not change the current tax imposed on income derived from stocks and bonds.  
Although the state of Tennessee does not currently impose such a tax, proponents of the measure believe the constitutional ban is necessary to clarify that the tax is unconstitutional in Tennessee.   The resolution relies heavily on the fact that the Supreme Court of Tennessee has held on three separate occasions that the General Assembly lacks constitutional authority to levy a state tax on any class of income other than income derived from stocks and bonds.  
To view the full text of S.J.R. 1, click http://www.capitol.tn.gov/Bills/108/Bill/SJR0001.pdf.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Chambliss, Bahner & Stophel, P.C. | Attorney Advertising

Written by:


Chambliss, Bahner & Stophel, P.C. on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.