Gov. Lee’s Full ‘Tennessee: Leading the Nation’ Agenda Passes

On Friday, Tennessee Governor Bill Lee marked the close of the 2023 legislative session, which includes the successful passage of his $56.2 billion budget and full legislative agenda as outlined during his State of the State address in February.

“To prepare Tennessee for continued growth and prosperity, we’ve made strategic investments to cut taxes, strengthen our workforce, ensure educational opportunity and modernize transportation infrastructure across our state,” said Lee.

“I commend the General Assembly for its partnership to pass conservative measures and maintain Tennessee’s reputation for strong fiscal stewardship.”

Lee’s agenda included the Transportation Modernization Act, historic legislation that will create a new transportation strategy and invest $3.3 billion to accommodate Tennessee’s record growth, address traffic congestion and meet transportation needs across rural and urban communities without raising taxes or taking on debt.

The roster of budget and legislative priorities also dedicated $250 million to Tennessee’s Rainy Day Fund, bringing totals to an historic $2.05 billion, and included significant investments in tax relief, K-12 education, Tennessee’s skilled workforce and conservation.

Notably, Lee led a comprehensive school safety proposal to enhance physical security in public and non-public schools across Tennessee.

Highlights from Lee’s agenda include the following:

Transportation & Infrastructure Modernization

–$3 billion to the Transportation Modernization Fund to alleviate urban congestion and fund rural road projects across the state, which includes $750 million allocated to each of Tennessee’s four TDOT regions

–$300 million to expand the State Aid Program for local road projects, allocating 15 times more funding toward local communities than they receive each year for transportation projects

–Ensures that Tennessee has the resources necessary to meet current and future transportation needs by engaging in Public-Private Partnerships (P3s), Alternative Delivery Models and Electric/Hybrid vehicle fee parity

Economic Opportunity & Tax Relief

–More than $400 million in tax cuts for Tennessee families and businesses through the Tennessee Works Tax Act, one of the largest tax relief measures in Tennessee history

–$273 million for a one-time, three-month sales tax holiday on grocery items, providing tax relief for Tennessee families

–More than $150 million in annual small business tax relief, including raising the exemption threshold for the business tax, exempting the first $50,000 of net income from excise tax and protecting the first $500,000 in property investment from the franchise tax

–$64 million to simplify tax administration and conform with the federal bonus depreciation provisions of 2017 Tax Cuts & Jobs Act, allowing businesses to more quickly recover costs and further incentivize investment in Tennessee production

–Provides foundation for supporting Tennessee’s continued economic growth, aligning Tennessee with more than 30 states by adopting “single sales factor” apportionment for franchise and excise tax

Skilled Workforce

Nearly $1 billion to complete the TCAT ………………

………………..FOR COMPLETE STORY, PLEASE READ 5/10/23 ISSUE OF THE REVIEW………..