Bill > HB0988

This bill clarifies the tax exemption status for subsidiaries of agricultural cooperative associations in Tennessee, expanding the existing tax privilege provision to apply regardless of the legal entity structure of the subsidiary (such as a corporation, limited liability company, partnership, or other legal entity). The legislation specifies that subsidiaries controlled by one or more agricultural cooperative associations formed under Tennessee law will not be considered for-profit businesses and will be exempt from privilege taxes, provided that any profits earned by these subsidiaries are either paid to or used for the benefit of the agricultural cooperative association. The key legislative intent is to support and promote agricultural interests in the state by providing tax relief to cooperative-controlled subsidiaries, effectively allowing these entities to operate without being subject to standard business taxation when their primary purpose is to support agricultural activities. The bill will take effect immediately upon becoming law.

Budget and Finance

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB0988&ga=114