Tennessee House, Senate at impasse on franchise tax repeal, rebate

(The Center Square) – Members of a Tennessee conference committee on the repeal and refund of the state’s business franchise tax are at an impasse and went into recess after less than 10 minutes of discussion on Tuesday morning.

The main points of contention on the bill are the length of time the rebate will cover – one year in the House version, three in the Senate – and whether the names of businesses receiving the rebate should be made public.

Neither side would back down on either issue.

“Right now, we do not have a bill,” said House Majority Leader William Lamberth. “And so, if we do not pass a bill, obviously none of that would be necessary.

“My hopes are not high at this juncture.”

- Advertisement -

The House version of Senate Bill 2103 would refund $713.6 million or one year of franchise tax while the Senate passed a version worth three years of franchise taxes for an estimated $1.6 billion.

Sen. Jack Johnson, R-Franklin, said the Senate would agree on having company’s sign a waiver not to sue the state regarding the franchise tax before accepting the rebate and would agree to have companies required to first use any outstanding Department of Economic and Community Development tax credits to offset the refund amount.

“I don’t know that there is a pathway at this juncture to proceed,” Johnson said.

Sen. Bo Watson, R-Hixson, suggested Tennessee Attorney General Jonathan Skrmetti, the Department of Revenue and Gov. Bill Lee’s office give testimony at any future meeting of the committee.

Johnson said further announcements on conference committee meetings would come during a full session of the Senate.

“I would say that we are at an impasse as it relates to being able to find a solution because I really feel like the House’s version is the one that we’re going to stick with,” said Rep. Ryan Williams, R-Cookeville.

Hot this week

African and Caribbean Nations Call for Reparations for Slave Trade, Propose Global Fund

Nations across Africa and the Caribbean, deeply impacted by...

Sports betting expert offers advice on paying taxes for gambling winnings

(The Center Square) – Tax season is underway, and...

Health care company agrees to pay $22.5 million to settle claims of over billing

A health care company agreed to pay nearly $22.5...

Entertainment district benefits don’t outweigh the cost, economists say

(The Center Square) — Weeks later, after more details...

Business association ‘disappointed’ by WA L&I’s proposed workers comp rate hike

(The Center Square) – The Association of Washington Business...

Fiscal hawks: House budget plan could add $25 trillion in debt over next decade

House leaders have praised their early work on crafting...

The Hydrocodone Hyperbole: The Best Drug For Pain Isn’t Always An Opioid

Even though opioids are highly addictive, they continue to...

Cornell evaluating Trump’s DEI executive order, NYU has no comment

(The Center Square) – Cornell University is evaluating President...

Illinois one of the leaders in generating tax revenue from sports gambling

(The Center Square) – Illinois is one of several...

Feds, some lawmakers tackle post-Madigan efforts to curb public corruption

Federal authorities and state lawmakers say they will keep...

Man pleads guilty to $1.5 million in SNAP fraud

(The Center Square) – An Illinois man pleaded guilty...

Illinois lawmakers zoom in on budget ahead of governor’s address

(The Center Square) – Illinois lawmakers have differing budget...

Inflation hits Illinois consumers hard, especially in Chicago area

(The Center Square) – According to a new report,...

More like this
Related

Fiscal hawks: House budget plan could add $25 trillion in debt over next decade

House leaders have praised their early work on crafting...

The Hydrocodone Hyperbole: The Best Drug For Pain Isn’t Always An Opioid

Even though opioids are highly addictive, they continue to...

Cornell evaluating Trump’s DEI executive order, NYU has no comment

(The Center Square) – Cornell University is evaluating President...

Illinois one of the leaders in generating tax revenue from sports gambling

(The Center Square) – Illinois is one of several...