Anti-Income Tax Amendment Sails Through Committee

A constitutional amendment designed to clarify that Tennessee’s Constitution prohibits an income and payroll tax easily passed the House State Government committee this week.

The amendment, Senate Joint Resolution 1, specifies that the legislature as well as Tennessee counties and cities shall be prohibited from passing either an income tax or payroll tax, which is a tax on employers that is measured by the wages they pay their workers.

Once approved by the legislature, the amendment will be placed on the 2014 statewide ballot for a referendum vote by the people of Tennessee. If passed by referendum, the Tennessee Constitution will then be amended to officially ban a state income and payroll tax.

A payroll tax has been proposed in recent years by elected officials as a way around an income tax.  This includes a 2.5 percent payroll tax proposal in Shelby County. In 2010, eight Democrat state lawmakers filed legislation to implement a state income tax.