From January through late spring, the Tennessee Society of CPAs and its lobbying team works with the Tennessee General Assembly to ensure the Legislature’s work aligns with our industry’s priorities. Promoting the value and integrity of the accounting profession and protecting your license from harmful legislation and burdensome regulations are priorities for TSCPA when determining legislative policy.
To kick off the new legislative session, Gov. Bill Lee delivered his fifth State of the State address to the 113th Tennessee General Assembly on Feb. 6. During his address, Gov. Lee outlined his proposed budget for the 2023-24 fiscal year beginning July 1. The budget proposal focuses on six areas: infrastructure and economic development, education, safe neighborhoods, strong and healthy families, and the environment and clean energy.
Gov. Lee’s budget proposal signals he aims to make transportation a priority. The budget allocates $3 billion to create a new fund for road projects in all Grand Divisions. Additionally, the budget provides $300 million to the local highway program.
In regard to economic development, Gov. Lee’s proposal increases the filing threshold for business tax from $10,000 to $100,000. He also discussed his commitment to The Tennessee Works Act as a means to incentivize businesses to invest in Tennessee. The Act will begin a three-year transition to Single Sales Factor for franchise and excise taxes in the state.
Education is another top priority in Gov. Lee’s proposed budget. Notably, it includes $1 billion – the state’s largest investment in technical colleges – to train 10,000 workers and complete the Tennessee Colleges of Applied Technology (TCAT) Master Plan by building six new TCATs, expanding and improving 16 existing TCATs and replacing seven outdated facilities. The budget additionally provides $350 million for the Tennessee Investment in Student Achievement formula, including $125 million for teacher pay raises.
Gov. Lee’s proposed budget also provides funding for a variety of initiatives for families. It includes $288.3 million for a grocery tax holiday from Aug. 1 to Oct. 31, 2023, and a $100 million grant program for crisis pregnancy centers, among other things. The Department of Children’s Services also receives significant support, with $190 million allocated to address conditions at its facilities and staffing issues.
Other notable budget items addressing the governor’s priority areas include:
- $357 million for network expansion of the Tennessee Advanced Communication Network
- $50 million to the Violent Crime Intervention Grant Fund
- $70 million to the Tennessee Clean Initiative to clean up state superfund sites, Oak Ridge and all 47 known dry cleaner sites
- $50 million to a Nuclear Fast Track Fund to recruit companies that will establish a nuclear development and manufacturing ecosystem
In addition to funds for his policy priorities, Gov. Lee’s budget proposal adds $250 million to the state’s Rainy Day Fund. In total, the governor’s proposed budget represents $55.6 billion in funding for the 2023-24 fiscal year.
TSCPA has been following SB1353/HB 1486 by Sen. Rusty Crowe, R-Johnson City, and Rep. Scotty Campbell, R-Mountain City. At the time of publication, the bill was on the calendar of the Senate Commerce and Labor Committee and assigned to the House Banking and Consumer Affairs Subcommittee. This bill prohibits a business entity from retaining a copy, in electronic or other formats, of a person’s identification unless the retention of that copy is specifically required by federal or state law, or the business entity obtains the express consent of the holder of that identification. It also prohibits a business entity from refusing to transact business with a person solely on the basis that the person refuses to provide express consent to the business entity or its agent, employee or contractor retaining the copy. A violation of the bill would be a Class B misdemeanor constituting an unfair or deceptive act under the Consumer Protection Act of 1977.
TSCPA will continue to monitor proposed legislation that may have an impact on the accounting profession. For more information on the bills introduced in the legislative session, visit 2023 Legislative Update.
This article was originally published in the March/April 2023 Tennessee CPA Journal.
