state taxes

TN politicians praise Supreme Court decision on states collecting taxes from on Internet sales

Overturning older decisions, the U.S. Supreme Court ruled today that states may require most online retailers to collect sales taxes on purchases made by their residents. The 5-4 decision came in a South Dakota case that had seen  Tennessee’s attorney general joining in support of South Dakota’s effort to begin requirement collection of the taxes.

Tennessee’s state Department of Revenue issued a new rule in 2016 requiring internet sellers to collect state and local sales taxes from their Tennessee customers. State legislators let the new rule stand, but implementation has been stalled awaiting court action.

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State revenue $128M above budget estimates in April

Press release from Department of Finance and Administration

NASHVILLE, Tenn. – Tennessee Department of Finance and Administration Commissioner Larry Martin today announced that revenues for April exceeded the monthly revenues from the previous year.  State revenues for April were $1.9 billion, which is a growth of 3.76 percent more than last year and $128.3 million more than the state budgeted.

“Total revenues in April reflect significant improvement compared to  this time last year,” Martin said.  “Much of the growth is driven by franchise and excise tax payments, business tax receipts, privilege taxes and sales tax revenues.  Hall income tax revenues posted a significant reduction from receipts received in April 2017, but were expected to be lower due to several large early payments made in December and January of this fiscal year.  All other tax revenues, taken as a group, exceeded the April estimates.

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State paying $17.5M to New York firm for moving to Nashville — along with targeted tax break

The state Department of Economic and Community Development has agreed to give $17.5 million to AllianceBernstein for moving its headquarters from Manhattan to Nashville, reports the Nashville Business Journal.   A bill approved by the legislature this year also gives the company a tax break that served to “sweeten” state support for the move, says the state’s ECD commissioner.

The Beacon Center of Tenessee, which has been crusading against “corporate welfare,” had urged that AllianceBernstein get nothing in the way of taxpayer-funded incentives. The global financal firm announced with Gov. Bill Haslam last month that it will bring 1,050 jobs to the state’s capitol city, investing about $70 million.

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Approved bill lets TN corporations avoid increased taxation

A bill that largely spares Tennessee corporations from an increase in state business taxes otherwise triggered by President Donald Trump’s 2017 federal tax overhaul is on its way to Gov. Bill Haslam for his signature, reports the Times Free Press.

According to a legislative fiscal note, enactment of the bill (SB2119, as amended) means the state will be giving up potential $112 million in foregone state corporate excise tax revenue over a period of several years beginning in fiscal year 2020-2021. And businesses, of course, will be spared paying that much in added taxes.

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Whiskey barrel tax exemption bill goes to the governor

The House voted 78-12 Monday to exempt Jack Daniel’s whiskey barrels and those of smaller Tennessee distillers from paying property taxes. An attorney general’s opinion says they are subject to being taxed and Moore County – home of the Jack Daniel’s distillery in Lynchburg – wants to do so. Taxing the barrels as personal property would mean more than $2 million in new revenue for the county.

The Senate had approved the bill (SB2076) earlier on a 30-0 vote, so it goes to Gov. Bill Haslam for his presumed signature — or maybe without his signature as a bow to the AG opinion.  The bill was pushed by lobbyists for the distilleries — Jack Daniel’s and others — and opposed by local government lobbying groups including the Tennessee Municipal League and the Tennessee County Services Association contending the tax break amounted to special treatment for one group in violation of the state constitution. Proponents of the bill sharply disputed the AG opinion.

Previous post HERE.

TN tax take in March: Complicated but basically about what was expected

Press release from Department of Finance and Administration

NASHVILLE, Tenn. – Department of Finance and Administration Commissioner Larry Martin (Friday) announced that Tennessee tax revenue fell short of budgeted estimates in March. Overall March revenues totaled $1.1 billion, which is $84.1 million more than the state collected in March of 2017, but $2 million less than the budgeted estimate for the month.

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Legislature approves new $2 tax on strip club customers

The legislature has given final approval  to a bill levying a $2 tax on each customer entering a “sexually oriented business” – or strip club. Revenue raised from the tax under the measure, as introduced, was earmarked a fund to benefit survivors of sex trafficking, paying for things like more beds and programs at sex trafficking rehab centers, though changed via amendment to state that’s only a general intent.

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State revenue: A bit below budget in February; year-to-date take shows $181M surplus

Press release from Department of Finance and Administration

NASHVILLE, Tenn. –  Tennessee Department of Finance and Administration Commissioner Larry Martin announced today that Tennessee tax revenue fell short of budgeted estimates in February. Overall February revenues were $884.9 million, which is $38.2 million more than we received in February one year ago, but were $3.4 million less than the state budgeted. The overall growth rate for February was 4.51 percent.

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AG contradicts Jack Daniels’ bill — says whiskey barrels can be taxed

A legal opinion from the state attorney general’s office says the barrels used to age whiskey in Tennessee distilleries are subject to property taxes paid by businesses, despite a contention to the contrary in a bill pending before the General Assembly.

Producers of Jack Daniels whiskey have been pushing the bill (SB2076) since officials in Moore County laid plans to begin applying the tax to aging barrels, something not done in the past. The fiscal note prepared by legislative staff estimates that would mean about $2.8 million in new revenue for Tennessee’s smallest county.

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State revenue down in January, still ahead of budget for fiscal year

Press release from Department of Finance and Administration

NASHVILLE, Tenn. – Tennessee Department of Finance and Administration Commissioner Larry Martin today announced that overall January state tax revenues posted less than expected, while year-to-date state revenues remain more than budgeted. Revenues for January totaled $1.4 billion, and were 3.18 percent less than revenues received in the same time period one year ago, and were $25 million less than budgeted.

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