The Jackson Sun editorialized Thursday in support of Sen. Finney’s efforts to provide a sales tax break on home appliances and building supplies for flood victims. Below is the text of the May 20 editorial.
JACKSON SUN – MAY 20, 2010
A legislative bill amendment co-sponsored by state Sen. Lowe Finney, D-Jackson, would offer a sales tax break to certain flood and storm victims in Tennessee. It is a reasonable measure that would cost the state little if anything, and it deserves to be passed. It is a small way to help Tennesseans whose lives have been uprooted by the recent weather disasters.
The amendment was added to a state tax modification bill connected to the proposed state budget. The amendment offers state and local sales tax relief for the purchase of essential home items including major home appliances up to $3,200 each and building materials up to $500 each. The tax break would apply to anyone receiving federal disaster assistance as a result of the early May flooding and tornadoes in West and Middle Tennessee. The exemption would run through Sept. 30.
It is hard to estimate how many Tennesseans lost most, if not all, their household possessions during the recent flooding and storms. In many instances, these losses are not covered by insurance. People will have to use personal savings, loans and federal disaster relief assistance to replace the essentials of everyday living as they rebuild their homes and their lives. The sales tax relief in the amendment will help stretch recovery dollars for these items.
Lawmakers also point out that the tax break would have little if any impact on state revenue. The majority of the items and construction costs covered by the bill likely would not have been purchased had it not been for the weather disaster. The state budget did not anticipate such a revenue windfall. And there is little likelihood of the tax break being abused since anyone qualifying for it also would have to qualify for federal disaster assistance. By definition, these are people in serious need of help.
It is heartbreaking to read the stories and see the photos and videos of fellow Tennesseans who have lost nearly all of their personal and family possessions. Many already were reeling financially from the recession. Now they face even more difficulty. Spreading recovery dollars over goods and services, rather than state taxes, is a small way in which the state can help ease the burdens of recovery and rebuilding lives.