Hensley Highlights Tax Relief, Economic Growth as 114th General Assembly Adjourns

State Sen. Joey Hensley, MD, said the 114th General Assembly wrapped up the 2025 session with significant progress on tax relief and economic policy aimed at making Tennessee a stronger place to live, work, and raise a family.

Hensley noted that since 2011, the General Assembly has approved more than $8.2 billion in tax cuts, a strategy he said has helped broaden the state’s economic base and attract new investment while allowing families to keep more of their income.

A key achievement cited by Hensley was the full repeal of the Hall income tax, which he said returned more than $1.8 billion to Tennesseans and benefited seniors and retirees in particular. Lawmakers also eliminated the state’s death and gift taxes, providing more than $1.2 billion in relief and easing the transfer of family farms and small businesses to future generations.

The senator said lawmakers have also targeted everyday costs. Reductions to the grocery sales tax—nearly 30% since 2011—have saved residents more than $1.2 billion, while sales tax holidays on items such as school supplies, clothing, food, and prepared meals have provided more than $500 million in additional consumer savings.

Hensley pointed to reforms of the franchise and excise tax as another major focus, including the 2024 repeal of the property-based minimum franchise tax. He said those changes addressed longstanding business concerns and provided nearly $800 million in relief, supporting job growth and capital investment. Lawmakers have also reduced or eliminated the professional privilege tax for several professions.

In rural communities, Hensley said the legislature approved tax exemptions and credits for agriculture and farm equipment and passed the Tennessee Broadband Investment Maximization Act to encourage broadband expansion while protecting local revenues.

He also highlighted the 2023 TN Tax Works package, which included small business tax relief, a three-month grocery tax holiday, and reforms aimed at making Tennessee more competitive for employers.

Hensley said the state’s long-term commitment to conservative budgeting and pro-growth policies has strengthened Tennessee’s economy and will continue to guide lawmakers as the state looks to the future.