x
Breaking News
More () »

Tennessee sales tax for Amazon, other online retailers? 5 of 6 candidates for governor say yes

The question arose in Chattanooga Monday night during a forum hosted by the Chattanooga Times Free Press.

Five of the six top-tier candidates for governor say they would support a state sales tax on online retailers doing business in Tennessee.

The question arose in Chattanooga Monday night during a forum hosted by the Chattanooga Times Free Press.

Present were Republicans Randy Boyd, Bill Lee and Beth Harwell and Democrats Craig Fitzhugh and Karl Dean.

Republican Congressman Diane Black was invited but cited a scheduling conflict as a reason for being unable to attend.

Tennessee impact: Supreme Court internet sales tax ruling: What it means for you

Dean was the first candidate to take the question about whether he would approve of states collecting sales tax from online retailers following Thursday's Supreme Court decision allowing them to do so. The candidates were also asked what he they would like to do with the additional revenue.

Reactions: Supreme Court ruling on internet sales taxes splits Tennessee businesses

Dean said he would support the tax because the state needs the revenue and because it is the fair thing to do.

"Folks who operate businesses here are competing against people out of state who are selling to Tennessee and not paying taxes on it, so it kind of levels the ground," Dean said.

The former Nashville mayor said he would spend the extra revenue investing in public education and paying teachers more.

Williamson County businessman Lee said he looks at the potential tax as a way to protect businesses in the state.

"When we have businesses in Tennessee and their bricks and mortar are here and they are doing business here and they are selling products to the citizens of this state and they are having to compete with a company that’s out of state that’s doing online sales, that isn’t having to compete on the same levels, it’s not fair to our businesses," he said.

Lee also said that while Tennessee is a low-tax state for individuals, that's not necessarily the case for businesses.

"Our franchise and excise taxes in Tennessee are not competitive with the adjacent states," he said.

Current House Minority Leader Fitzhugh said he's glad the Supreme Court decision came when it did, but the subject isn't new.

"Remember folks, these aren't new taxes, these are taxes that people are supposed to pay, but don’t because there hasn’t been means to collect them," he said. "It will help all of us as taxpayers when we have that fairness."

Fitzhugh said he hopes that millions of dollars that can be gained from such a tax could go to pay teachers more or buffer the state's rainy day fund.

House Speaker Harwell said the new tax will give the state an opportunity to do something she has wanted for a long time: lowering the state sales tax.

"The obvious is it’s a question of fairness," she said. "We need to collect our taxes on our mom and pop store because that is what is fair to our mom and pop stores all across our wonderful state."

Boyd said the tax is not only fair but essential to the continued growth of the state.

"I would say that as sales are moving more and more to the internet and sales tax is such an important part of our revenue, if we didn’t do this we are going to be in trouble," he said.

Boyd said he would also like to reduce the franchise and excise tax and issue a one-time, non-recurring amount of revenue to combat the opioid epidemic among other things.

Before You Leave, Check This Out