By Tom Humphrey

The Senate approved 25-7 Monday night a proposed amendment to Tennessee’s constitution that would prohibit a state income tax.

The measure ( SJR763, with an adopted amendment) now goes to the House. If approved there during the current legislative session, it will need approval again by the 107th General Assembly, which meets in 2011 and 2012, and then, finally, approval by voters in a statewide referendum in 2014.

The resolution was sponsored by Sen. Brian Kelsey, R-Germantown, who said he believes an income tax is already unconstitutional in Tennessee, but a constitutional amendment is needed to “clarify” that is the case because some dispute the proposition.

“If you want less of something tax it. If you want more of something, don’t tax it,” said Kelsey in his floor speech, adding that he was paraphrasing President Reagan. “We all want more income in Tennessee, so let’s make sure we never tax it.”

Sen. Douglas Henry, D-Nashville, and Jim Kyle, D-Memphis, spoke against the resolution. Henry said he was concerned that it also prohibits cities and counties from levying a payroll tax, which is in effect a tax on businesses rather than individuals.
Henry, who said he has always opposed an income tax, also contended it is not appropriate to prohibit anything far into the future.
Two senators spoke against the measure –

“I can’t read the in the tea leaves what’s going to happen 20 or 30 or 40 years from now. I don’t know what kind of box we’re going to be in,” Henry said. “I don’t believe I can look far enough into the future to say this unpleasant necessity might be forced upon us to continue to operate the state.”

Kyle said he believes the entire resolution is “defective” because it requires formal notice of the resolution be given to the public by posting it on the Internet. The state constitution says proposed amendments must be “published” and many believe that does not cover the Internet, which did not exist when the 1870 constitution was adopted.

Kyle noted that about half of Tennessee households do not have Internet access and predicted the courts will reject the whole resolution, meaning it will never come to a statewide vote even if it clears the legislative process.

The no votes came from Sens. Ophelia Ford, D-Memphis; Thelma Harper, D-Nashville; Joe Haynes, D-Nashville; Henry; Kyle; Beverly Marrero, D-Memphis; and Reginal Tate, D-Memphis.