AP NEWS

Tennessee governor’s gym tax repeal bill clears Legislature

March 28, 2019

NASHVILLE, Tenn. (AP) — Tennessee Gov. Bill Lee’s push to repeal an amusement tax on gym memberships is awaiting his signature to become law.

The Senate voted to clear the bill Thursday, following suit after the House’s passage last week. Lee’s budget anticipates the state losing $12.4 million in revenue annually with the tax cut.

Advocates said the bill levels the playing field for smaller gyms, since larger facilities are exempted from the tax.

Republican Senate Majority Leader Jack Johnson argued the last thing the state needs to focus on is taxing gyms when Tennessee sits near the bottom in many health rankings.

It’s unclear whether the repeal would lead to lower gym costs.

Republican Sen. Todd Gardenhire, the Legislature’s lone ‘no’ vote, said the bill would strip state revenue without replacing it elsewhere.