Marketplace Fairness Act Could Mean Lower Tennessee Taxes
Governor Haslam, House Speaker Beth Harwell and Senate Speaker Ron Ramsey say they want to use revenue generated by the pending Marketplace Fairness Act to reduce current state taxes. The Fairness Act would allow states to collect the sales taxes on online sales for retailers making more than $1 million a year. But the Knoxville News Sentinel reports that Governor Haslam says officials don’t actually know how much revenue would be created if the law is enacted. The National Conference of State Legislatures estimates that last year, Tennesseans avoided more than $748 million in sales taxes on online purchases. About $400 million would have gone to city, county, and state governments.