Bass, Berry & Sims attorney Steve Jasper provided comments for a Law360 article outlining the impact of the new Tennessee Works Tax Act, signed by Governor Lee on May 11. As described by Law360, the new law will transition Tennessee to a “single-sales-factor apportionment formula for franchise and excise taxes, increase its business tax filing threshold, provide a three-month tax break for food, and enact other tax changes.”
The legislation “has been presented by the governor as an attempt to encourage investment in Tennessee and reward companies that … make significant investment in Tennessee, and I think most of the provisions are consistent with that goal,” Steve told Law360.
Steve added that the shift to single-sales-factor apportionment is one of the “most significant” parts of the legislation, adding that the change “does make Tennessee more consistent with its surrounding states.”
The full article, “Tenn. Shifts To Single-Sales-Factor Apportionment For Taxes,” was published by Law360 on May 11 and is available online (subscription required).