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The big news on the franchise tax front is removing the alternative minimum measure which provides tax relief to the business community and make the state more competitive while removing a potential legal vulnerability that jeopardizes the state's financial stability.
The bill now goes to the House, where it first must be considered by the Finance, Ways, and Means Subcommittee. It is important that House members, particularly those on the subcommittee and the full Finance, Ways and Means Committee hear from businesses about the importance of cleaning up this issue to improve the Tennessee's business tax climate and protect the financial stability of the state moving forward.
OTHER BUSINESS LEGISLATION
The legislature is scheduled to consider several bills that would have a negative impact on business. First is the consideration of bill SB2781/HB1949, which was recently amended to create a felony if a business accommodates someone using a restroom other than the one assigned to their gender. More troubling, the legislation includes a private right of action against a business that commits the offense. This would require businesses to police who is using what restroom or risk exposure to legal action.
Additionally, SB2863/HB2889 is scheduled to be heard and would require "agents of foreign adversaries" to complete a substantial registration process with the Tennessee Ethics Commission. The definition of "agents of foreign adversaries" is expansive and would include many employees of companies with ownership based in China. It also includes substantial penalties for failure to register. The broad application and stiff penalties could lead to unknowing Tennesseans simply working for foreign-owned companies from committing violations without their knowledge.
Information provided by the Tennessee Chamber of Commerce.
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