In some cases, we notify you when it’s time to rally on an issue, but we also work with our outstanding Public Policy Committee to handle many challenges on your behalf, so you can stayfocused on running your business.
That was certainly the case earlier this year when state officials made moves to tax computer software as tangible personal property – a change that would have cost our member-investors millions of dollars. Hayes Ledford, our Vice President of Public Affairs, worked with our legislative delegation and other business organizations across the state to pass a bill that closed the administrative loophole that would have permitted the additional taxation.
Hayes also represented the business community during efforts to equalize the Basic Education Program (BEP) formula. Currently, the BEP returns such a small Percentage of the taxes Hamilton County residents pay that we rank last in per pupil funding from the state. As a result, we shoulder a bigger tax burden at the local level to achieve parity.
Although special interests continue to provide deeply entrenched support for the current BEP formula, we worked with an alliance of urban legislators and business organizations in achieving a significant interim step -- the House and Senate passed resolutions directing a committee of the State Board of Education to re-examine the BEP formula and recommend a fairer state funding formula in November. Next year, we’ll continue to push for a fair share, which would amount to millions of dollars for Hamilton County Schools.
As with the ongoing effort to achieve parity in state education funding, enhancing Tennessee’s economic development incentives has proven too thorny an issue to tackle in a single session, but after three years of advocating alongside our economic development partners, we have achieved significant improvements in the state’s approach to supporting business retention, expansion, and recruitment.
The recently passed legislation gives state officials more flexibility in offering incentives for smaller job creation projects. The legislation also increases the amount of the credits and extendstheir duration. In addition, the Industrial Machinery Credit was expanded to offset more of a company’s state tax liability.
These changes are especially important because the aggregate economic impact of smaller business investments creates most local jobs while keeping our economy diverse. The Chamber joined other pro-business forces to defeat bills that would have created a state minimum wage and authorized firefighter unions to strike and bargain collectively. We opposed both of these bills because they undermine the free market’s ability to determine wages and benefits.
During all of these efforts, the Chamber received outstanding support from Hamilton County’s legislative delegation, so I invite you to join me in thanking all of them, especially retiring State Senator David Fowler who provided strong leadership on Economic Development issues. Remember when you have public policy questions or concerns, we invite you to contact Hayes Ledford at hledford@chattanoogachamber.com. We’re here to take some of the pain out of public policy.
