Tennessee Senate Bill SB0302

Tennessee 2023-2024 Regular Session

• Introduced: 1/20/23

Caption

AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 4, Part 20 and Title 67, Chapter 4, Part 21, relative to taxation.

Impact

If enacted, SB0302 would standardize the reporting process for tax credits associated with industrial machinery, allowing for better transparency and accountability in how these tax benefits are allocated. The bill aims to ensure that lawmakers have a thorough understanding of the fiscal implications of such tax credits and their effectiveness in promoting industrial growth. By mandating this report, the bill could potentially influence future tax policy decisions and ensure that credits are being utilized in a manner that promotes economic development.

Summary

Senate Bill 302 (SB0302) seeks to amend certain provisions of the Tennessee Code Annotated related to taxation, particularly focusing on industrial machinery. The bill mandates that the Commissioner of Revenue must report to the finance, ways and means committees of both the Senate and the House of Representatives regarding the total annual amount of tax credits provided under designated sections pertaining to industrial machinery franchise and excise tax for the fiscal years 2021 to 2023. This reporting requirement is intended to offer insights into the financial impact of these tax incentives on industry in Tennessee.

Sentiment

The sentiment surrounding SB0302 appears to be generally supportive among stakeholders who advocate for transparent governance and fiscal responsibility. Proponents believe that increased reporting will enhance the legislative process and allow for more informed discussions about fiscal policy. However, there may also be some concerns raised by those who feel that additional regulatory requirements could burden revenue collection processes and business operations, although specific opposition points are not detailed in the available discussions.

Contention

Notable points of contention regarding SB0302 may arise around the balance between promoting industrial growth through tax incentives and ensuring such incentives do not disproportionately favor certain industries or large corporations over smaller local businesses. Additionally, there is the potential for debate on how the information collected through the reporting mechanism will be used and whether it could lead to adjustments or reductions in tax credits in the future depending on how the effectiveness of these credits is evaluated.