Gov. Bill Lee proposes rainy-day boost and franchise-tax overhaul in state address

NASHVILLE — Governor Bill Lee outlined steps to strengthen Tennessee’s fiscal position in his State of the State address, proposing a $20,000,000 investment to grow the state’s rainy‑day fund toward $2,000,000,000 and a simplification of the franchise tax as part of further tax relief.

Lee said Tennessee’s “legacy of fiscal responsibility” has produced high rankings — including low debt and strong bond ratings — and that continued prudence will let the state resolve what he described as an outdated franchise‑tax law. “We became aware of the need to change the law which has been in place for almost 90 years. So we crafted a solution that resolves the issue now,” Lee said.

The governor tied the proposals to broader economic claims, saying companies have invested billions and created hundreds of thousands of jobs in recent years. He framed the tax‑law change as a corrective measure to protect Tennessee taxpayers while preserving room for future tax cuts.

What happens next: Lee said he will work with the General Assembly to advance the proposals. He did not provide bill numbers, a timetable for votes, or an estimate of the fiscal impact beyond the one‑time rainy‑day deposit described in the address.