A new proposal before the state legislature would exempt flood victims in Tennessee from paying sales tax on replacement items. House Democratic Leader Gary Odom is working out the details this week.
More than 28,000 Tennesseans have applied for disaster assistance with FEMA. For those who qualify for the federal help, Rep. Gary Odom of Nashville wants them to get a sales tax exemption too.
His idea exempts homeowners replacing appliances and purchasing building materials from paying sales tax on those items. Odom says the taxes wouldn’t have come in to the state were it not for the flood. To pay for the tax break, Odom is proposing to draw from the state’s reserve fund.
The Senate Finance Committee has already approved another flooding tax break that would benefit Opryland’s rebuilding efforts. Nearly all of the state sales tax would be waved for businesses – such as Opryland – that suffer damage in excess of $50 million.
Both the Opryland and homeowner tax breaks would be included in the so-called “technical corrections” bill, which is typically used to close tax loop holes.
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