Tennessee Senate Bill SB2792

Tennessee 2023-2024 Regular Session

• Introduced: 2/1/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 67, relative to franchise and excise taxes.

Impact

The introduction of SB2792 could significantly affect state laws regarding tax administration and industrial taxation. By instituting a reporting requirement, the bill aims to improve accountability regarding the use of tax credits allocated for industrial machinery. This could potentially lead to legislative discussion on whether to adjust tax credits or explore their effectiveness in stimulating industrial investment in Tennessee. The required report may also serve as a basis for future legislative changes concerning tax incentives for industries in the state.

Summary

Senate Bill 2792 is an act aimed at amending Title 67 of the Tennessee Code Annotated in relation to franchise and excise taxes. The bill mandates that by February 1, 2025, the commissioner of revenue must provide a written report to the finance, ways, and means committees of both the Senate and the House of Representatives. This report will detail the total annual amount of tax credits for industrial machinery franchise and excise taxes distributed under Tennessee Code Annotated, Section 67-4-2009(3) for the fiscal years 2020 through 2024. This requirement seeks to provide transparency and oversight into the amounts allotted for these tax credits over the stated period.

Contention

While the specifics of potential points of contention around SB2792 are not detailed in the available transcripts, discussions surrounding franchise and excise tax credits generally revolve around the effectiveness and equity of such tax incentives. Critics often argue that tax credits can disproportionately benefit larger corporations or specific industries at the expense of state revenue and equitable tax policy. Thus, proponents of increased transparency, such as those supporting SB2792, may frame the need for reporting as a necessary step to ensure the proper allocation of tax credits and to allow for informed legislative decisions in the future.