HB0118 - Tennessee - Taxes

Taxes - Decreases the sales tax rate on food from 6 percent to 3 percent; increases the cigarette tax rate from 10 mills per cigarette to 3.25 cents per cigarette on July 1, 2007, and further increases the cigarette tax rate each subsequent July 1 until July 1, 2018, by the greater of 0.15 cent or the amount needed to offset the loss in revenue incurred by the decrease in the sales tax on food. - Amends TCA Section 67-4-1004 and Section 67-6-228(a).

Increase State Revenues - Net Impact - $91,109,000 / Education Fund Decrease State Revenues - Net Impact $67,595,000 / General Fund $11,223,000 / Earmarked to Local Governments $856,000 / Department of Revenue $2,139,000 / Sinking Fund Increase State Expenditures - $220,000 Recurring $200,000 One-Time Decrease Local Govt. Revenues - Net Impact $7,001,000 Recurring