State tax revenues took another hit Thursday, coming in $55.7 million less than expected for December and deepening the state’s financial hole to $182 million for this fiscal year. Business taxes were the main culprit, producing $35.8 million less than budgeted. The state’s downturn in revenues mainly began in October collections. That month, revenues set state financiers back on their heels after business taxes came in $75.7 million below expectations. For the fiscal year, corporate taxes are $73.5 million short of the budgeted estimates. Another important tax for the state’s coffers — the sales tax — came in at a higher rate for December but was still $5.1 million short of expectations.
For the fiscal year, sales tax revenues are nearly $60 million below the estimates. The Bredesen administration’s proposed budget went to press this week and will be presented Jan. 28. But if the tax collections for January, which will come out in the next few weeks, continue to underperform, the Bredesen administration may have to revise what’s in their printed budget. The state has estimated it would have a $120 million to $230 million shortfall for the year in total taxes. To try and plug that hole, the Bredesen administration has $45 million in TennCare dollars and $37 million in Cover Tennessee funds to go on a onetime basis to address the shortfall. In addition, the Bredesen administration is asking state departments to save another $42 million, and next year’s state budget will likely have a limited number of new projects. For the year, tobacco tax revenues are also down $40.3 million of budgeted estimates, which were expected to raise roughly $230 million. The majority of that money was earmarked for K-12 education.
In other news, the Senate is not doing much next week, as State and Local, Environment and Finance Committees will not meet. Many of the committees in the House have little or no bills on their calendars as well.
There have been several changes in the Bredesen Administration as his term enters into its second term. The Administration named Michael Drescher as the new Communications Director replacing Bob Corney who is leaving for the private sector. Senior Advisor and former House Majority Leader Kim McMillan left in January to pursue other interests and Senior Policy Advisor Robert Gowan left in November to return to the private sector. Pat Miller, former chief of staff for Lt. Governor John Wilder, has been tapped to lead the Bredesen administration’s legislative team, and Will Pinkston, a former Wall Street Journal reporter has joined the staff as a senior advisor.
Please call if you have questions.
Tennessee Legislation Service (c) 2008 M. Lee Smith Publishers
Friday, January 18, 2008 |
ALCOHOLIC BEVERAGES |
SB 0634*
HB 1750
(Full Text) |
Allows sale of alcohol on Sundays that are certain holidays. Allows retailers to sell alcoholic beverages on Sundays between the hours of noon and eleven p.m. and on Labor Day, the Fourth of July, and New Year's Day. (S: Marrero; H: Jones U.)
Senate Status: Failed in Senate State & Local Government 03/13/2007 for lack of a second.
House Status: Referred to House Local Government Subcommittee. |
SB 0680*
HB 0787
(Full Text) |
Cannot sell beer or alcohol near drug treatment facility. Authorizes counties and cities to adopt ordinance or resolution that prohibits sale of beer and alcoholic beverages within 2,000 feet of a drug or alcohol treatment facility. (S: Bunch; H: Campfield)
Senate Status: Referred to Senate State & Local Government.
House Status: Referred to House Local Government Subcommittee. |
SB 0795*
HB 1324
(Full Text) |
ID tags on beer kegs. Requires retailers to place identification tag on kegs containing beer that identifies the seller. Requires purchaser to pay a minimum deposit of $75 and to sign a registration form. Directs department of revenue to prescribe and supply forms for keg identification so that buyers and sellers can be held accountable for unlawful purchases. Violation is a Class C misdemeanor. (S: Burchett; H: Briley)
Senate Status: Referred to Senate State & Local Government.
House Status: Taken off notice in House Local Government Subcommittee 04/18/2007. |
SB 1221*
HB 1194
(Full Text)
Public Chapter (PDF) |
Special occasion license for certain events. Allows charitable, nonprofit, or political organization to obtain special occasion license for event in political subdivision that has approved sale of alcoholic beverages for consumption on the premises. Clarifies current law that specifies approval only of the sale of alcoholic beverages at retail on the premises. (S: Cooper J.; H: Harmon)
Senate Co-Sponsor: Haynes House amendment 1 rewrites the bill to authorize the Swiss Colony in Gruetli-Lager to give samples of homemade wine at its annual festival.
Senate Status: Senate passed 05/07/2007.
House Status: House 04/09/2007 passed with amendment 1.
Other Status: Enacted as Public Chapter 0203 (effective 05/22/2007). |
SB 1223*
HB 1529
(Full Text)
Public Chapter (PDF) |
Special occasion license for charitable organization. Permits alcoholic beverage commission to issue a special occasion license to certain 501(c)(3) organizations for selling wine in closed containers for consumption on or off premises. Allows any resident of Tennessee to donate wine to such organizations. (S: Cooper J.; H: Odom)
Senate Co-Sponsors: Haynes; Kyle; Norris; Marrero Senate amendment 1 requires organization to have $1,000,000 annual budget. Also requires donated bottles of wine to be properly registered with the department of revenue.
Senate Status: Senate 05/07/2007 passed with amendment 1.
House Status: House passed 05/24/2007.
Other Status: Enacted as Public Chapter 0342 (effective 06/05/2007). |
SB 1224*
HB 1755
(Full Text) |
Retail license holder may offer free samples of wine. Permits entities holding a retail license or a winery license to provide free samples of wine to consumers on the premises under certain circumstances. Subjects those who violate specified requirements while providing samples to suspension of license or a fine of up to $3,000. (S: Cooper J.; H: Jones U.)
Senate Co-Sponsor: Haynes
House Co-Sponsor: Tindell
Senate Status: Taken off notice in Senate State & Local Government 05/01/2007.
House Status: Taken off notice in House Local Government Subcommittee 05/09/2007. |
SB 1807*
HB 2120
(Full Text)
Public Chapter (PDF) |
Any wine made from 50 percent TN fruit - unlimited sale. Allows any winery selling wine made from 50 percent of any Tennessee fruit to sell it on premises without restriction on number of gallons sold where grapes were previously the only fruit under this provision. (S: Ketron; H: Litz) Senate amendment 1 allows any winery selling wine made from 50 percent of any Tennessee agricultural product to sell it on premises without restriction on number of gallons sold. Clarifies that bill's provision apply to Tennessee fruit only. House amendment 1 substitutes the word "grapes" for "agricultural products" and provides that gift, tourism, or wine related items may be sold on the premises of a licensed winery.
Senate Status: Senate 06/06/2007 concurred in House amendment 1.
House Status: House 05/29/2007 passed with amendment 1.
Other Status: Enacted as Public Chapter 0433 (effective 06/18/2007). |
SB 1821*
HB 1658
(Full Text) |
Registration period for beer manufacturers, distributors. Increases time period from 20 to 25 days for manufacturer or distributor of beer to register at the office of the commissioner of revenue. Broadly captioned. (S: Bunch; H: Mumpower)
Senate Status: Referred to Senate State & Local Government.
House Status: Caption bill held on House clerk's desk. |
SB 1879
HB 1119
(Full Text) |
Beer distributors' registration. Increases time period during which beer distributors must register with commissioner of revenue from 20 to 25 days. (S: Jackson; H: Buck)
Senate Status: Referred to Senate State & Local Government.
House Status: Caption bill held on House clerk's desk. |
SB 1977*
HB 1850
(Full Text) |
Wine direct shipper license. Creates wine direct shipper license to be issued through the alcoholic beverage commission that would allow an in-state or out-of-state entity to ship wine directly to consumers age 21 years or older in this state for personal use. (S: Stanley; H: Todd)
Senate Status: Senate State & Local Government deferred to 2008.
House Status: House Local Government Subcommittee deferred to 02/06/2008. |
SB 2072
HB 1899*
(Full Text) |
Sales of wine by certain retail food stores. Prescribes the creation of an additional class of licenses allowing the sale of wine at retail food stores. (S: Marrero; H: Kernell)
Senate Status: Failed in Senate State & Local Government 03/13/2007 for lack of a motion.
House Status: Referred to House Local Government Subcommittee. |
SB 2289
HB 1825*
(Full Text) |
Wholesaler's license expansion. Allows wholesaler's licenses to be granted in any municipality that has approved the sale of alcoholic beverages rather than only those with a minimum population of 100,000. (S: Burchett; H: Lundberg)
Senate Status: Referred to Senate State & Local Government.
House Status: House Local Government Subcommittee deferred to 01/30/2008. |
SB 2686*
HB 2824
(Full Text) |
Allows direct shipment of wine for personal consumption. Authorizes the direct shipment of wine for personal consumption to residents of Tennessee who are 21 years of age or older. Requires wine manufacturer, producer, supplier, importer, wholesaler, distributor or retailer to obtain a wine direct shipper license prior to sending any shipments to residents. Specifies that a licensee cannot ship more than two 9-liter cases of wine annually to any person for that person's personal use. Specifies other requirements for licensee. (S: Jackson; H: Shepard)
Senate Status: Referred to Senate State & Local Government.
House Status: House companion bill introduced. (H: Shepard) |
SB 2814
HB 2730*
(Full Text) |
Direct shipment of wine to consumers. Authorizes the direct shipment of wine for personal consumption to residents of Tennessee who are 21 years of age or older. Requires wine manufacturer, producer, supplier, importer, wholesaler, distributor or retailer to obtain a wine direct shipper license prior to sending any shipments to residents. Specifies that a licensee cannot ship more than two 9-liter cases of wine annually to any person for that person's personal use. Gives authority to the alcoholic beverage commission and the department of revenue to promulgate rules and regulations for the creation of a direct shipper license. (S: Roller; H: Fraley)
Senate Status: Referred to Senate State & Local Government.
House Status: Introduced 1/16/2008 |
COMMERCIAL LAW |
SB 0850*
HB 1019
(Full Text) |
Processing fees charged for use of debit or credit card. Prohibits card issuer from charging a processing fee to retail merchants for the use of credit or debit cards that is more than seventy-five hundredths of one percent (0.75 percent) per transaction for all processing fees involving the use of a credit or debit card. (S: Kilby; H: Ferguson)
Senate Status: Senate Commerce, Labor & Agriculture deferred to 05/01/2007.
House Status: Taken off notice in House Utilities, Banking & Small Business Subcommittee 04/10/2007. |
TAXES BUSINESS |
SB 1394*
HB 1193
(Full Text) |
Increased tax on cigarettes and wine. Increases tax on spirits from $4.40 per gallon to $4.50 per gallon. Also increases tax on wine from $1.21 per gallon to $1.31 per gallon. Increases tax on cigarettes from 10 mills per cigarette to 1.5 cents per cigarette. (S: Crutchfield; H: Harmon)
Senate Status: Taken off notice in Senate Finance Tax Subcommittee 03/20/2007.
House Status: Referred to House Finance Budget Subcommittee. |
SB 2659*
HB 3100
(Full Text) |
Tax credits for small business providing health benefits. Provides a tax credit for small business employers that provide health benefits to employees. Defines "small business" as a taxpayer that employs no more than 25 eligible employees throughout the taxable year. (S: Black; H: Curtiss)
Senate Co-Sponsor: Herron
Senate Status: Referred to Senate Finance, Ways & Means. |
TAXES SALES |
SB 1802*
HB 1296
(Full Text) |
Exemptions for certain licensed wholesalers and retailers. Exempts certain sales of tangible personal property and services made by licensed wholesalers and retailers from a central warehouse or distribution point other than its principal place of business from sales and use tax. (S: Ketron; H: Sargent)
Senate Status: Referred to Senate Finance, Ways & Means.
House Status: Referred to House Finance Budget Subcommittee. |
SB 1974*
HB 2158
(Full Text) |
Alcoholic beverages sold for consumption on premises. Specifies that the burden of proving that a taxpayer's records are inaccurate for the purpose of projecting taxpayer sales of alcoholic beverages for on-premises consumption from the taxpayer's wholesale purchases shall be on the department of revenue, (S: Haynes; H: Briley)
Senate Status: Senate Finance, Ways & Means 06/11/2007 recommended. Sent to Calendar Committee. Set for Senate consent calendar 06/11/2007. Senate passed 06/11/2007.
House Status: Set for House Finance Budget Subcommittee 06/11/2007. Taken off notice in House Finance Budget Subcommittee 06/11/2007. |
TRANSPORTATION GENERAL |
SB 2571*
HB 2590
(Full Text) |
Parking for disabled. Requires businesses to provide disabled parking. Specifies if at least four disabled parking spots are provided, one parking space should be van accessible. Requires van accessible parking spaces to be at least nine feet wide and to have an adjacent access aisle that is at least eight feet wide. (S: Marrero; H: Richardson)
Senate Status: Referred to Senate Transportation.
House Status: Introduced 1/14/2008 |
