Tennessee’s Proposed Business Refund: $1.2 Billion Business Tax Refund at Stake with Senate Bill 2103
Annual Loss of $410 Million Due to Property Tax Abolition in Senate Bill 2103
According to Longview News-Journal, the Tennessee Legislature is getting ready to decide on a $1.2 billion business tax refund for businesses. The $1.2 billion business tax refund would be the first of its kind and could cost the state up to $1.5 billion. It’s all about getting rid of part of the franchise tax that deals with property. The $1.2 billion business tax refund would mean the state loses about $410 million in tax money every year. The final cost of Senate Bill 2103 depends on how many businesses ask for refunds after the state stops taxing their property for the years 2020-2023.
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$1.2 Billion Business Tax Refund in Tennessee – Tennessee Legislature Discuss! (PHOTO: Getty Images)
Tennessee’s Unique Business Property Tax and the Push for $1.2 Billion Business Tax Refund Initiative Amidst Legal Concerns and Tax Reform Debate
Tennessee’s Revenue Commissioner David Gerregano highlights that the state stands alone in taxing business property prompting a $1.2 billion business tax refund initiative to prevent legal issues. Businesses that are part of the $1.2 billion business tax refund must have reported property by January 1, 2021 and can apply until February 3, 2025. Senator Jack Johnson aims to ensure legislators not judges shape tax rules. Critics argue Tennessee’s franchise tax deters businesses from keeping property in the state. A report by the Beacon Center reveals Tennessee’s high tax rate prompting the proposed bill to change tax calculations. Despite concerns proponents stress the importance of updating tax rules.
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