TBA Law Blog


Posted by: Paul Burch on Jan 16, 2024

Tennessee legislators intend to thwart future legal challenges to the state’s franchise tax by eliminating a provision in the 1935 law that faces a “pending challenge," state Revenue Commissioner David Gerregano said this week. According to the Tennessee Journal, Gerregano told Senate Finance Chair Bo Watson, R-Hixson, that tax experts in his department identified a “significant legal risk” in the way the tax is structured, which could prove “extremely costly” to Tennessee taxpayers. Companies doing business in Tennessee face paying business franchise and excise taxes of 0.25%. The franchise tax is projected to raise $1.732 billion in the current budget year.