There could be big changes coming to Tennessee’s franchise tax this year. Earlier this month Governor Bill Lee proposed amending the 89-year-old franchise tax to enact changes that could reduce the franchise tax for many taxpayers prospectively.
Under the Governor’s proposal, the alternative tax base on the value of property that a taxpayer owns or uses in Tennessee would be eliminated. Going forward, taxpayers would calculate tax based on net worth only.
除了 to a potential reduced tax liability going forward, there may also be an opportunity for some taxpayers to seek refunds for franchise taxes paid in prior years (2021 and later). These changes are outlined in proposed legislation that was filed in the General Assembly on Monday, 1月22日, 2024 (1893年众议院法案).
It is expected that Governor Lee may address this issue in his upcoming 状态 of the 状态 address on Monday, 2月5日, 2024.