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Legislative Update: State of the State highlights - education, no new taxes Sen. Joey Hensley, R-Hohenwald The budget moved front and center on Capitol Hill during the week of Feb. 8 as Gov. Bill Lee presented his proposal to fund state government with improvements, prioritizing education, health care, and job development, particularly Tennessee’s rural communities.  Lee’s State of the State and budget address was also highlighted by an accounting of Tennessee’s COVID-19 response and plans for a full economic recovery. Consistent with conservative principles, the budget does not propose new taxes. Tennessee is recognized as the third least taxed state in the nation. Since 2011, the General Assembly has reduced sales tax on food by nearly 30%, phased out the Hall income tax, eliminated the gift and inheritance taxes, reduced the professional privilege tax for 15 professions, and cut taxes on manufacturing to enhance job creation.

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