Note: This story was last updated at 9:30 p.m.
Oak Ridge could lose $500,000-$700,000 per year in revenues if the repeal of the Hall income tax is approved, Oak Ridge City Manager Mark Watson said last week.
If Governor Bill Haslam signs a bill that the state legislature passed Friday, the tax, which was enacted in 1929, would be eliminated in the 2022 tax year. Haslam has not said whether he will the sign the bill into law or veto it.
If it becomes law, the bill could cost Oak Ridge about $119,000 in the fiscal year that starts July 1, or about 1.25 cents on the property tax rate, Mayor Warren Gooch said Saturday. The legislation would reduce the Hall income 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.
The Hall income tax generated total revenue of $303.4 million in Tennessee in fiscal year 2014-15, and $105.5 million went to cities and counties, with the rest going to the state.
On Thursday, Watson said the amount dispersed to Oak Ridge varies between about $500,000 to $700,000 per year. State data shows Oak Ridge collected about $708,000 in 2015. [Read more…]