TBA Law Blog


Posted by: Paul Burch on Jan 4, 2024

Gov. Bill Lee will propose changes to the state's franchise tax during the upcoming legislative session to offer tax relief to businesses operating in Tennessee and modernize tax collection, reports the Tennessean. Businesses currently calculate their state franchise tax in a dual-pronged model established in the 1930s. Lee also said today he has no plans to propose a rate cut to the state’s 4% grocery tax, one of the highest rates in the nation. Democrats in the state legislature have called for a repeal of the grocery tax while requiring corporations who do business in the state to pay higher taxes.