NFIB/TN Members Vote to Support 3 Key Bills

Date: February 14, 2018

 

NFIB/TN recently sent out a special survey on three bills that would impact small business owners. Here’s how members responded:

Tax Reform: Support

SB 1744/HB 1593 would exempt smaller employers from filing franchise and excise tax returns in Tennessee. Currently, the franchise tax is based on the greater of net worth or the book value of real or tangible personal property owned or used in the state; the excise tax is based on net earnings or income for the tax year.

Under the bill, the filing requirement would be phased out, beginning with an exemption threshold of $100 in year one (beginning July 1, 2018), $250 in year two, and $500 in year three. The fiscal impact of the exemption for the state is expected to be less than 1 percent of all franchise and excise returns, but the relief will be meaningful for small businesses because filing these returns is burdensome and costly—using a CPA to file the return often costs more than the tax itself.

Eighty-one percent of NFIB/TN members voted to support this legislation.

Tort Reform: Support

SB 1811/HB 1839 would limit a claimant’s attorney fees in employment discrimination cases to no more than a claimant’s award. A claimant would also be required to pay an employer’s legal costs if the claim is deemed frivolous, as well as in certain other circumstances.

Currently, employment discrimination cases can be very expensive and difficult to settle for businesses. Claimants are sometimes encouraged to keep their complaint alive, even after a reasonable settlement offer has been made, which benefits the claimant’s attorneys the most. This bill would address that problem and give employers more leverage when a claim is completely without merit.

Ninety-two percent of NFIB/TN members voted in favor of this bill.

Workforce Development: Support

SB 1649/HB 1599 would establish liability protection for employers who accept or employ students who are receiving a secondary education to participate in work-based learning coordinated through the student’s local education agency. This would mean that employers will not be held liable for students’ adverse actions unless employers act willfully or with gross negligence. The bill would also create a $500 franchise and excise tax credit per student hired for those employing work-based learning students.

Meeting workforce needs is currently a huge problem for small business owners in Tennessee and nationwide, and this bill would help prepare students with important experience. It also reduces the risk of hiring students for employers and can save them up to 25 percent in recruiting and retention costs down the road.

NFIB/TN voted 81 percent in favor of this measure.

 

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