- Associated Press - Wednesday, April 16, 2014

NASHVILLE, Tenn. (AP) - A proposal to make changes to the state’s Hall tax has failed this session.

The sponsor of the measure withdrew it from the Senate Finance Committee on Wednesday after the committee voted to add an amendment the sponsor felt hurt the legislation.

The state currently imposes a 6 percent levy on income from dividends and investments. The rate for the state is 3.75 percent, and 2.25 for local governments.

Before the amendment, Republican Sen. Mark Green of Clarksville proposed removing the state rate and keeping the one for local governments. However, Republican Sen. Randy McNally proposed, and the committee adopted, an amendment to essentially phase out the tax over 10 years.

Green said that legislation was harmful because some local government budgets depend heavily on the tax.

He withdrew the measure, but told reporters outside the committee that he planned to bring it back next year.

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