Bill > HB2043

This bill: - Eliminates the grocery tax in Tennessee. - Enacts the "Business Enterprise Tax Act," which imposes a 0.75% tax on the "taxable enterprise value tax base" of business enterprises in Tennessee. This tax base includes compensation, interest, and dividends paid by the business. - Enacts the "Worldwide Combined Reporting Act," which requires the use of worldwide combined reporting for the purposes of the franchise and excise taxes in Tennessee. This means that the net earnings and apportionment factors of all domestic and foreign corporations or entities that are part of a unitary business must be included in the reporting and apportionment, rather than just the Tennessee operations. The bill makes various other changes to the franchise and excise tax laws in Tennessee, including modifying definitions, deductions, and reporting requirements. The bill takes effect January 1, 2025 and applies to tax years beginning on or after that date.