Amends TCA Title 67, Chapter 2.

Present law phased-out the Hall income tax on incomes derived by way of dividends from stocks or by way of interest on bonds over a five-year period with the tax rate being reduced to zero for any tax year beginning on or after January 1, 2021. This bill authorizes municipalities, by two-thirds vote of their legislative bodies, to levy an income tax on incomes derived by way of dividends from stocks or by way of interest on bonds of each person, partnership, association, trust, and corporation in this municipality who received, or to whom accrued, or to whom was credited during any year income from dividends from stocks or interest on bonds. The full text of this bill specifies administrative matters that a municipality must address when levying the tax, including setting the tax rate. This bill authorizes municipalities to include exemptions in the ordinance levying the tax; provided, that the tax must not apply to the first $1,250 for each individual return or $2,500 of combined income for persons who file jointly, of income otherwise taxable under this bill.