Bill > SB1002

This bill clarifies and expands the tax exemption for subsidiaries of agricultural cooperative associations in Tennessee. Specifically, the bill modifies existing law to ensure that any subsidiary controlled by one or more agricultural cooperative associations will not be considered a for-profit business for tax purposes, regardless of its legal structure (such as a corporation, limited liability company, or partnership). The key intent is to provide a tax exemption for subsidiary entities where any profits are ultimately returned to or used for the benefit of the parent agricultural cooperative association. By doing so, the legislation aims to support and promote agricultural interests in the state by removing potential tax barriers for cooperative business structures. The bill takes effect immediately upon becoming law, demonstrating the state legislature's view that this change serves the public welfare by providing additional financial flexibility for agricultural cooperatives and their subsidiaries.

Agriculture and Natural Resources, Budget and Finance

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB1002&ga=114