Bill > SB0397

This bill proposes to eliminate the professional privilege tax in Tennessee for tax years beginning on or after June 1, 2026. Currently, professionals are required to pay a $400 annual privilege tax for each profession they are licensed in, but under this legislation, the tax will be reduced to $0 starting June 1, 2026. The bill specifically amends Tennessee Code Annotated, Section 67-4-1703, to modify the tax provisions. While the tax will be eliminated for future tax years, the bill explicitly states that this does not absolve taxpayers of any tax liability for tax years ending before June 1, 2026. This means professionals will still need to pay the $400 privilege tax for any tax years prior to the June 1, 2026 cutoff date. The legislation takes effect immediately upon becoming law and is designed to reduce the financial burden on professionals by removing this annual tax obligation.

Budget and Finance

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB0397&ga=114