Last year at Labor Day, Tennessee in the midst of a grocery sales tax holiday, but the event will not be back this year.
Representative Ryan Williams said that tax collections were over two and a half percent less than what the state budgeted for the year. Williams said they simply did not have the revenue to extend the holiday while supporting existing state services.
“Generally speaking, the funding formula which generates the expected revenue is based upon an average of a two point three percent growth over the last decade,” Williams said. “However, last year it was flat and there was no growth.”
Williams said the five previous years had a growth rate of four and a half to six percent which prompted the creation of the holiday. Williams said they hope to see the holiday return next year if their revenue allows for it.
“From finance speak, it’s not a cut,” Williams said. “It’s not cut from the budget because we only did it one year. It was just that we didn’t have the revenues in order to realize that lost revenue like we did in previous years.”
Williams said people were thankful for the holiday last year but he has not heard anything from his constituents about its absence this year.
“Much like in everyone’s individual homes, the cost of goods and services (has) gone up dramatically, therefore consuming more of the budget,” Williams said. “Whether it’s roads or bridges or healthcare or pension benefits.”
