Proposal to end sales tax exemption for newspapers stalls - WRCBtv.com | Chattanooga News, Weather & Sports

Proposal to end sales tax exemption for newspapers stalls

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NASHVILLE (AP) - The sponsor of a proposal to end a Tennessee sales tax exemption for newspapers has removed the bill from consideration for the year.

State Sen. Todd Gardenhire said he introduced the bill because of questions about whether the exemption "was justified in today's environment." The Chattanooga Republican said there are too many exemptions in state law, and that he wants to re-examine the issue next year.

According to a legislative analysis, the state forgoes about $11 million a year because periodicals aren't subject to the tax. Local governments miss out on another $3.9 million.

Gardenhire also sponsored a bill to allow legal notices to be published online instead of in printed newspapers. That measure failed to receive a motion in the State and Local Government Committee last month.

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