Tennessee Governor, Bill Lee, recently announced a change to the Tennessee franchise tax. Previously, taxpayers paid franchise tax on either their net worth or the value of property they owned or used in Tennessee.
On April 25, 2024, the Tennessee General Assembly simplified this law so that taxpayers now only need to calculate their tax based on their net worth. After calculations, taxpayers will be taxed at a rate of $0.25 for every $100 of that base. If taxpayers have already paid taxes based on the property value in the past, they can ask for a refund from the Tennessee Department of Revenue. Taxpayers can claim their refunds for tax years of 2020-2023.Â
If this is applicable to you and you’d like to learn more about this new franchise tax, reach out to one of our HORNE experts.
