Bill would save Tennessee residents money on their water bill by eliminating sales tax

NASHVILLE, Tenn.--Proposed legislation filed by Tennessee State Senator Joey Hensley (R-Hohenwald) would save Tennesseans money on their water bill.

Sen. Hensley filed SB 1949 on Wednesday, the bill calling for a repeal of sales tax levied on residents paying for water provided from public utilities.

The bill would apply to water sold by a public utility to Tennesseans for residential use, be it a home or apartment. Businesses, hotels, motels, or other units used by transient occupants would not be covered under the bill.

Speaking with FOX 17 News, Sen. Hensley's office says the bill was brought to them by Rep. Clay Doggett (R-Pulaski), who is expected to file a House version of the bill. According to Hensley's office, residents in Giles and Lawrence Counties reached out to Rep. Doggett after sales tax on water for agricultural use was repealed.

The current sales tax in Tennessee is 7%. Given the legislation was filed today, a fiscal note on the potential impact of state revenue should the bill pass has not yet been submitted.