On May 6, 2024, Bass, Berry & Sims reported on a historic development in Tennessee’s tax law. The Tennessee General Assembly passed a bill to repeal and refund the alternative property measure of the franchise tax, which has been a point of contention due to its constitutionality.
The new legislation will make the franchise tax based solely on net worth for tax years beginning in 2024. Additionally, taxpayers who have paid the tax based on the property measure in the last three years will be eligible for automatic refunds. These refunds will be calculated as the difference between the tax paid using the property measure and what would have been paid using the net worth base.
To claim the refund, taxpayers must submit a claim using a special form provided by the Tennessee Department of Revenue between May 15, 2024, and November 30, 2024. Names of taxpayers who receive refunds will be listed on the DOR website for a limited time between May 31, 2025, and June 30, 2025, with categories indicating the range of refund amounts.
Governor Lee is expected to sign this bill into law soon, marking a significant change in Tennessee’s tax landscape. This development is crucial for businesses and individuals affected by the franchise tax and highlights the importance of staying informed about changes in tax laws.
For more details on this legislative update and its implications, visit Bass, Berry & Sims for expert insights and analysis. Stay informed about tax law changes and seek specialist advice to navigate your specific circumstances effectively.
Stay updated on tax news and developments by following Bass, Berry & Sims for expert guidance and analysis. For more information on this topic and other tax updates, visit their website for valuable insights and resources.
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