Speaking of A$$...Isn't that just the perfect headline over the wires on AP just now?
Jul 3, 2002 P,0269 Ass Tax Plan; Governor Expected to Sign It, Ending Budget Stalemate
By Tom Sharp
Associated Press Writers
NASHVILLE, Tenn. (AP) - The state Legislature passed a 1-cent sales tax increase late Wednesday, ending a partial government shutdown and giving Tennessee its biggest tax hike in state history.
The bill now goes to Gov. Don Sundquist, who said he would sign it.
The stalemate over an income tax and how to resolve an $800 deficit resulted in lawmakers failing to meet their constitutional deadline to pass a balanced budget by July 1, the start of the new fiscal year.
Sundquist was forced to furlough half of the state's 42,000 workers, and keep only essential services, such as prisons, public safety and mental health hospitals operating.
Those employees will return to work Friday, Sundquist said.
"There are elements of this revenue bill I don't like very much, but that is what compromise is about. During this critical time, we all have given a little," Sundquist said.
The House narrowly approved the sales tax bill 50-41 - the minimum number of votes required for passage. The Senate passed it 22-11.
When the tax goes into effect July 15, Tennessee will have one of the highest sales tax rates in the country - 9.75 percent in 30 of the state's 95 counties. At $933 million, it's the largest tax increase in state history.
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On the Net:
legislature.state.tn.us
AP-ES-07-03-02 2232EDT
This story can be found at: ap.tbo.com
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