The Oak Ridge Chamber of Commerce acknowledges the need for tax reform in Tennessee, but the organization has opposed changing the Hall income tax in a way that would hurt local governments, an official said Thursday.

Specifically, the Oak Ridge Chamber opposes modifying or ending the Hall income tax in a way that would result in a negative financial impact to local governments, Chamber President Parker Hardy said.

The Tennessee General Assembly passed a bill Friday that would lower the Hall tax on stock and dividend income from 6 percent to 5 percent in the 2016 tax year. The tax would be reduced by 1 percent per year after that until it is eliminated by 2022.

Oak Ridge officials expect to lose between about $100,000 and $120,000 in the fiscal year that starts July 1. There is an impact on other local communities as well—including Anderson County, Clinton, and Roane County—but none of them will lose as much as Oak Ridge.

The eventual repeal of the tax could cost Oak Ridge as much as $700,000 per year or more. The city collected $708,454 from the Hall tax in 2015. [Read more…]