Leaders of the legislative committee that oversees Tennessee’s tax laws say they believe a state Department of Revenue study of a downward spiral in collections from businesses will lead to a Haslam administration push for changes to the state’s franchise and excise levies next year.
“I think you’ll see a ‘technical corrections 2.0’ or something like that,” said Senate Finance Committee Chairman Randy McNallly, R-Oak Ridge.
“Now that we know there’s a problem, we have to logically go through the process of deciding what to do about it,” said House Finance Committee Chairman Charles Sargent, R-Franklin. “It’s a very complicated situation, but I think we’ll get there.”
Under former Gov. Phil Bredesen, the Department of Revenue would annually file a “technical corrections” bill on state tax statutes, typically with the stated purpose of closing loopholes that tax attorneys and accountants had discovered and were using to reduce company tax payments to the state.
The bills and their provisions were often roundly criticized by Republican legislators and Gov. Bill Haslam dropped the practice – and doubtless would avoid using the term “technical corrections” in any future endeavor.