Bill To End Tennessee’s Professional Privilege Tax Would Cut $80M In Fees

Image Credit: capitol.tn.gov

The Center Square [By Jon Styf] –

A bill that would end Tennessee’s professional privilege tax was introduced in a Senate subcommittee on Tuesday.

The bill, sponsored by Sen. John Stevens, R-Huntingdon, received a negative recommendation as it advanced through the Finance, Ways and Means Revenue Subcommittee and heads to the full Senate Finance, Ways and Means Committee.

“It’s completely appropriate for a negative recommendation by this committee and then the full committee can look for funding available to try to cover the loss in revenue,” Stevens said.

Senate Bill 705 would cost the state $80 million each year while eliminating the $400 annual licensing fee for lobbyists, attorneys and agents, broker-dealers, and investment advisors.

Last year, the Legislature removed physicians and osteopathic physicians from the tax at a cost of $9.7 million per year.

At that time, Stevens noted that the state would continue on its track to fully eliminate the tax. The companion bill, HB1274, is assigned to the House Finance, Ways and Means Committee.

“This is an annual event for me,” Stevens said.

The fee is due annually, so the bill would end the fees starting with payments due on June 1, 2024. There are 201,806 subject to the tax for the fiscal year that ends on May 31, 2024.

The state of Tennessee pays for 2,022 workers who are subject to the tax.

The bill’s fiscal note states that 86.6% of those subject to the tax live outside of Tennessee.

About the Author: Jon Styf, The Center Square Staff Reporter – Jon Styf is an award-winning editor and reporter who has worked in Illinois, Texas, Wisconsin, Florida and Michigan in local newsrooms over the past 20 years, working for Shaw Media, Hearst and several other companies. Follow Jon on Twitter @JonStyf.

One thought on “Bill To End Tennessee’s Professional Privilege Tax Would Cut $80M In Fees

  • February 22, 2023 at 4:50 pm
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    It’s time the Governor and the legislature address the billions in our state reserve’s which amount to theft by over taxation of their constituents!

    Reply

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