Lawmakers propose bill to waive sales tax in disaster areas
CHATTANOOGA (WRCB) - Tennessee House lawmakers announced a bi-partisan bill that would waive sales taxes in areas affected by disaster.
The bill, in approved, would allow Tennesseans that qualify for FEMA assistance to buy appliances, building materials and home furnishings tax free through the end of the year.
"The most important thing right now is for everyone to keep all their receipts until this legislation is approved," said House Democratic Leader Craig Fitzhugh (D-Ripley). "We've got to help our friends and neighbors get back on their feet. We plan to move this legislation through as quickly as possible, so that Tennesseans can start putting their lives back together."
The proposal provides for tax exemptions on household appliances up to $3,200 per item, building materials up to $500 per item and furnishings up to $3,200 per item. The exemptions are capped at $2,500 per household. Also, a $25,000 fine would be imposed on anyone who fraudulently applies for the assistance.
With support of both Republicans and Democrats, the bill is expected quickly move through the House and Senate.