Gerald McCormickNASHVILLE - State House Majority Leader Gerald McCormick, R-Chattanooga filed legislation that would cut Tennessee's sales tax rate from 7 percent to 6.75 percent.
"I filed this legislation in an effort to put an idea out on the table as we continue to discuss tax reform, and hopefully find a solution that will decrease taxes for all Tennesseans and help economic growth throughout the state," McCormick said in a news release.
State Senate Majority Leader Mark Norris, R-Collierville, is the bill's co-sponsor.
Noting that state revenues have come in below projections the last several years, McCormick said GOP leadership "feels it is time to have a meaningful and thoughtful discussion on the matter.
"Reducing the sales tax rate is just a small part of a much broader discussion on important tax reform issues that I look forward to having in the upcoming months," McCormick said.
One thing that won't include is a state income tax. Voters earlier this week approved an amendment to the Tennessee Constitution permanently prohibiting one from ever being considered.
In last year's budget, Tennessee collected some $7.2 billion from sales tax revenue, according to the Department of Revenue.
McCormick's proposal comes amid a renewed legislative push to phase
out the state's existing Hall Income Tax on tax dividends and bond interest.
In the meantime, the state has been experiencing problems with its franchise and excise taxes on businesses.