Public Chapter 301

SENATE BILL NO. 518

By Rochelle

Substituted for: House Bill No. 1568

By Langster, Ulysses Jones, Lois DeBerry, Pruitt, Sherry Jones, John DeBerry, Brooks, West

AN ACT To amend Tennessee Code Annotated, Title 67, Chapter 6, relative to sales and use tax.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

SECTION 1. Tennessee Code Annotated, Title 67, Chapter 6, Part 3, is amended by adding the following as a new, appropriately designated section.

Section ___. Within one (1) year of the effective date of this act, the Tennessee Advisory Commission on Intergovernmental Relations shall undertake a study to determine the structural deficiencies of Tennessee's sales tax base that results in slow revenue growth and declining sales tax collections simultaneously with a robust economy. The advisory commission shall report its findings to the Governor and the General Assembly. The study shall include, but not be limited to, the problems of differential tax rates among the states bordering Tennessee, state and local sales tax revenue loss, employment losses; and other relevant fiscal issues including the implications of sales and use taxation of food items intended for off-premises preparation and consumption.

SECTION 2. This act shall take effect July 1, 1997, the public welfare requiring it.