In an act praised by many across the state, Gov. Bill Lee enacted a recent bill that supports the Tennessee business community in two significant ways:
The bill eliminates the alternative minimum property tax.
The bill authorizes the state to refund any business that paid the alternative minimum within the last three years.
Under prior law, businesses paid either 0.25% of net worth or 0.25% real and tangible property in Tennessee — whichever amount was higher. The property tax was considered an alternative minimum.
By eliminating the alternative minimum, the new law leaves only the tax on net worth.
“This significant franchise tax cut will help ensure these valued employers continue to thrive,” said Rep. Patsy Hazelwood, who represents District 27. “I also encourage eligible businesses to apply for any refund they may be entitled to. Keeping taxes low for residents and businesses while remaining fiscally responsible remains a priority in Tennessee.”
Hazelwood chaired the House committee originally responsible for the bill. Laken Shattuck, Director of Public Policy for the Chattanooga Chamber of Commerce, believes the legislation will go a long way in helping small businesses in this region.
To receive a refund, businesses must file a claim between May 15 and Nov. 30, 2024. The Dept of Revenue has begun sending out letters to potentially eligible businesses, however, even if you don’t receive a letter, you still may be eligible for a refund.
“Eligible taxpayers must amend the returns for all eligible tax periods to create the Schedule G overpayment and then request the overpayment amount as a refund. Both the amended returns and the refund claim must be submitted by November 30, 2024,” the Dept. of Revenue states.
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