(NASHVILLE, TN), June 21, 2011 – Tennessee Governor Bill Haslam signed legislation today to give Hall Income Tax relief to senior citizens in the state age 65 and older. The ceremonial signing marked the enactment of the new law which passed with the support of Senate Majority Leader Mark Norris (R-Collierville). Norris said the measure raises the exemption levels to allow more senior citizens to qualify for relief from the tax.

“This legislation allows more seniors who have saved for retirement to qualify for tax relief,” said Leader Norris, who sponsored the constitutional amendment to enact property tax freezes for senior citizens by Tennessee municipalities. “Those who have saved for their retirement and who are on fixed incomes are hit hardest by the Halls Tax.”

Enacted in 1929, this tax was originally called the Hall income tax for the senator who sponsored the legislation. Currently, persons over 65 with total income less than $16,200 for a single filer or $27,000 for a joint filer are exempt. The legislation increases, beginning with tax year 2012, the annual Hall Income Tax standard income exemption for taxpayers 65 years of age or older from $16,200 to $26,200 for single filers and from $27,000 to $37,000 for joint filers. Of the individuals who pay the tax, 48 percent are age 65 and older.

“This new law dovetails very well with our property tax relief amendment for seniors,” added Norris. “The increase in the income exemption will also make the state more competitive in attracting retirees which is good for our economy. I am very pleased this legislation has been signed into law.”

###

Comments are closed.