Page 27 - 2022 THA Member Program

THA ANNUAL MEMBER’S MEETING
June 26 - 28, 2022

2022 TN STATE - End of Session Legislative Recap

The second half of the 112th Tennessee General Assembly commenced on January 11th with a return to normalcy as
the pandemic drifts out of sight. This session focused on Tennessee’s economic growth, fiscal security, and placed a
priority on tax cuts for Tennesseans as inflation continues to trouble the nation.

The 2022-2023 fiscal year budget of $52.5 billion, a nearly $10 billion dollar increase from last year’s proposal, places
significant emphasis on education, workforce expansion, welfare, and investments for Tennessee’s economic growth.
Bearing in mind the struggles that all Tennesseans faced as a result of the pandemic, the Governor set out early in ses-
sion to include a month-long grocery tax holiday in the budget. The grocery tax will exclude state-imposed taxes and
give citizens a financial break on grocery items. This budget also provides funding for a one-year removal of the state
fee for license plate renewals for all Tennessee drivers beginning July 1, 2022. The General Assembly also passed a
broadband tax relief project that has the goal of dispersing $204 million in funding over a 3- year period. The Tennes-
see Department of Economic and Community Development (ECD) will issue $68 million per-year in grants to help
bring internet connection to more Tennesseans.

Additionally, the legislature passed a new education funding formula, the Tennessee Investment in Student Achieve-
ment (TISA), which is set to replace the current Basic Education Program (BEP) funding formula, in the 2023-2024
fiscal year. TISA creates individualized funding for students, incorporating weights for students with unique learning
needs. Furthermore, the funding formula provides districts with direct and outcome-based funding.

The state’s budget also includes $500 million dollars in state bonds for a newly designed, covered stadium for the Ten-
nessee Titans which has an estimated total cost of $2.2 billion. The legislature proposed and passed a 1% increase for
hotel-motel tax in Nashville, which is estimated to generate at least $10 million per year, if implemented. The bill al-
lows Metro Nashville to have the option of using this as a tool to help pay for the new stadium. A domed facility will
allow Nashville to host more events during colder months.

The legislature also passed an extensive campaign finance reform bill. The legislation was sent to a conference com-
mittee to be negotiated between members of the two chambers on Thursday morning. The final version aims to
strengthen numerous disclosure requirements and makes various changes to current law to increase the transparency of
certain election expenditures.

With the 112th behind them, members will now head back to their newly drawn districts to campaign for elections this
fall. All members of the House and members in odd numbered Senate districts are up for reelection. Lawmakers will
continue the work of the state through summer studies and committee hearings during the summer and fall, and will
return to Nashville for the 113th General Assembly on January 10, 2023.

Tax Cut Highlights
• Agriculture machinery & equipment: $ 3 million
• One year waiver on the state license plate renewal fee: $121 million
• One month food sales tax holiday: $80 million
• Removal of professional privilege tax for physicians: $9.7 million
• Three-year broadband tax relief: $204 million
• Tax cut for computer systems services: $6.4 million

Investment in Education: TISA Formula At-A Glance
• Base funding: $6.6 Billion
• Weights: $1.8 Billion
• Direct Funding: $376 Million
• Outcomes Funding: $100 Million

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