Hall tax proposal would affect city budgets

Hall tax proposal would affect city budgets

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NASHVILLE (AP) - Tennessee municipalities are keeping a close watch on proposed legislation to eliminate or reduce the Hall tax.

The Tennessean reports that's because cities use funding from the tax in their budgets and losing it would cause a large dent.

The state currently imposes a 6 percent levy on income from dividends and investments. Lawmakers are discussing whether to reduce the tax or eliminate it gradually.

Gov. Bill Haslam recommended in his budget proposal earlier this week that no changes be made to it.

Metro Nashville Finance Director Rich Riebeling said losing revenue from the Hall tax would leave a big hole in the city's budget. He said the amount from the tax fluctuates, ranging from $7.4 million in 2010 to nearly $14 million in 2013.

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