NFIB announces support for Governor Lee’s small business tax package
A survey of NFIB members in Tennessee shows overwhelming support for significant relief from the burdensome tangible personal property tax. In addition, NFIB is announcing support for the Tennessee Works Tax Act, a sweeping tax relief package for small businesses introduced by Gov. Bill Lee earlier this month.
“Governor Lee’s tax proposal comes at a near-perfect time for so many Tennessee small businesses who have been struggling with severe labor shortages, high inflation, and supply chain challenges,” NFIB State Director Jim Brown said. “NFIB is encouraging lawmakers to pass this important tax relief plan, as well as a major reform to our tangible personal property tax and permanent restoration of vendors’ compensation.”
Survey findings include NFIB members’ support for the following:
- 87% said small businesses with less than $10,000 in tangible personal property should be allowed to have expedited assessments and not have to fill out that burdensome tax schedule, while only 5% oppose;
- 75% said Tennessee should eliminate the sales & use tax portion in the calculation of interchange fees, or “swipe fees,” on credit-card and debit-card transactions, while only 7% oppose; and
- 72% said Tennessee should compensate retailers permanently to help defray costs associated with collecting and remitting the sales tax to the state.
“NFIB once again is fighting to eliminate costly hassles and headaches for Tennessee entrepreneurs,” Brown said.” Allowing more than half of the state’s tangible personal property tax filers the option to pay a small fee instead of spending hours and hundreds of dollars to comply would be a most welcome relief.”
Brown added that “vendors’ comp” restoration remains a high priority. The modest reimbursement was eliminated in 2000; it was restored last year for one year only. “Retailers should never be unpaid tax collectors for our state’s biggest tax,” said Brown.
The governor’s tax proposal includes excise tax relief of up to $3,250 per year for 70,000 filers, franchise tax relief of up to $1,250 per year for 68,000 filers, and increasing the business tax exemption from $10,000 to $100,000, which will provide relief to 140,000 filers. Read more about the governor’s proposal and NFIB’s 2023 agenda in Tennessee on these and other issues.
