$1.2 Billion Tennessee Tax Refund For Businesses Around The State – Must Know!

Get to know more about the Tennessee tax refund that is currently being considered by the Legislature.

The recently introduced Tennessee tax refund will change the tax policy. (Photo: ABC7 Chicago)

Plans For A Tennessee Tax Refund

The Tennessee Legislature is considering a $1.2 billion franchise Tenessee tax refund for businesses, which could cost the state up to $1.5 billion. The Tennessee tax refund would repeal the property portion of the franchise tax.

The Tennessee tax refund would also allow businesses to apply for a refund of taxes paid from 2020-2023. Tennessee is the only state to tax business property in this way, and the Tennessee tax refund is intended to avoid potential litigation over the constitutionality of the tax.

The Tennessee tax refund would be available to businesses that reported property by Jan. 1, 2021, and file for a refund by Feb. 3, 2025. The current tax is seen as discouraging businesses from operating in multiple states and Tennessee has one of the highest franchise tax rates in the nation.

According to a published article by SmartNews, the proposed bill about the Tennessee tax refund would change the tax policy by removing the property assessment.

There is precedent for states to make refunds if a tax rule is later found to be unconstitutional, but there is wide flexibility in how states shape these remedies.

A Bill Proposed In The Senate

In a published article by WZNTV, a bill is being considered in the Senate that could give tax refunds to many Tennessee businesses.

The bill aims to repeal a state property tax on businesses that courts have deemed unconstitutional.

READ ALSO: Connecticut Child Tax Credit: Democrats Pushing For Its Implementation As It Has A Greater Economic Impact Than Mere Deductions