Here's a look at some of NFIB/Tennessee's victoroies during the 2012 session of the General Assembly:
Death tax phase out and repeal, gift tax elimination
NFIB was a leading advocate for killing our state's death tax, or inheritance tax. Beginning in 2013, Tennessee will start phasing out this harmful tax by raising the taxable threshold from $1 million to $1.25 million in 2013, $2 million in 2014 and $5 million in 2015. In 2016, the tax will be fully repealed.
A small farm or family business with $5 million in assets can expect to save $450,000 in state taxes, as well as the cost of planning and dealing with estate issues at the state level. NFIB also advocated for repealing the state gift tax, which immediately (retroactive to January 2012) eliminates this levy that hinders generation-to-generation transfer of assets.
Unemployment system overhaul
Loud and clear, you said Tennessee's unemployment system is broken and must be fixed. Leaders worked with NFIB to craft three bills that increase system accountability and integrity, which will help dismiss unwarranted claims, lower unemployment taxes over time and get unemployed individuals back to work sooner.
Reforms include a stronger misconduct definition, more audits to root out fraud and abuse, stricter work search requirements for claimants, a pending option for seasonal employers to seek such status to avoid out-of-season claims, and a more timely Internet-based system to submit 24-hour separation notices and respond to new claims within the required seven-day period. Be sure to review beneficial changes in the law, including adopting a written absenteeism policy signed by your employees, at www.NFIB.com/TN and www.state.tn.us/labor-wfd.
'Loser pays' tort reform
Thanks to NFIB's advocacy, parties and their counsel will now have financial incentive NOT to file frivolous lawsuits. Under the new law, reasonable and necessary attorney fees up to $10,000 can be paid to a prevailing party, when a trial court grants or denies a motion to dismiss for an invalid claim. This "loser pays" clause is expected to cause some plaintiffs to think twice before filing a lawsuit with no basis in Tennessee law.
The victory comes on the heels of major tort reform legislation passed in 2011, which includes caps on punitive and non-economic damages and creates a more level playing field for small businesses when it comes to product liability lawsuits and where cases are tried. In addition, NFIB led the charge to overturn a state Supreme Court decision that shifted the burden from the employee to the employer in summary judgment motions in employment discrimination and retaliatory discharge claims. This huge win, which restores the 40-year federal standard, will save affected small businesses thousands of dollars in legal fees.
Regulatory reform
Licensees now have an option to "opt in" to be alerted via e-mail 45 days in advance of an overseeing board's proposal to adopt a fee increase or rule change. Too many times only after the fact, our members have learned of fee increases of hundreds or thousands of dollars. We encourage all small businesses to take advantage of this customer-friendly service that greatly increases transparency and participation in the rule-making process.
Healthcare
NFIB continues its active opposition to new mandates that add significant cost (hundreds of dollars a year for very small businesses and thousands of dollars for mid-sized to larger small businesses) to your healthcare plans. These mandates eventually force thousands of small businesses to abandon coverage. We will support efforts to repeal several of Tennessee's 42 healthcare mandates, third highest in the Southeast.
Workers’ compensation
Tennessee's workplace injury definition is much improved, thanks to NFIB action in 2011. Injuries resulting from hobbies or outside work will not be compensable, protecting the integrity of the workers' comp system. The law also lifts restrictions between treating physicians and employers' counsel, a much needed improvement. NFIB also helped enact an important law that helps employers defend against workplace accident claims in which alcohol or drugs were a factor.
NFIB passed a bill in 2010 suspending the harmful workers’ comp mandate on sole proprietors, partners and LLC members in the construction industry, saving thousands of subcontractors from losing their businesses. We then helped pass a comprehensive workers’ comp reform law, which enables qualified small construction subcontractors to opt out of the Public Chapter 1041 mandate passed in 2008. The law works to ensure fair bidding, protects general contractors from picking up injured workers on their policies, protects workers who are intentionally being misclassified, and increases enforcement. The law will save qualified subcontractors from significant workers’ comp premiums by registering with the Secretary of State for a reasonable biannual fee. Members in these industries are reporting savings of between $2,000 and $25,000 a year (premiums they would have had to pay under the 2008 law).