Tennessee House Bill HB2745

Tennessee 2023-2024 Regular Session

• Introduced: 1/31/24
• Refer: 2/28/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 4, Part 21, relative to franchise tax.

Impact

The passage of HB2745 would establish a structured approach for assessing the impact of changes made to the franchise tax, contributing to greater fiscal transparency and oversight. By mandating the submission of an explicit report, the bill seeks to clarify how recent legislative changes have influenced state revenue streams. Such accountability measures could improve state financial planning and budgeting processes.

Summary

House Bill 2745 aims to amend the Tennessee Code Annotated regarding franchise tax regulations. The primary intention of this bill is to ensure the Department of Revenue submits a comprehensive report to the finance, ways, and means committees of both legislative houses by January 1, 2026. This report will address the revenue effects stemming from previous amendments to the franchise tax law, specifically those made by Chapter 377 of the Public Acts of 2023.

Contention

Notable points of contention surrounding HB2745 primarily relate to the broader implications of taxation policy and state financial governance. Critics may argue that delaying comprehensive fiscal reporting could undermine timely fiscal oversight, while supporters advocate for thorough analysis to justify any future changes in tax policy. The effectiveness of the report's recommendations and subsequent actions from the legislature could also spur debate on the overall health of the state’s tax framework.