June 30, 2009

2009 Legislative Report

Tennessee Society of
Certified Public Accountants

COMMENTS: These general bills may be viewed at www.legislature.state.tn.us/.

Key

P - Legislation with an active status

– - Comments

PC - Link to Public Chapter

The first year of the two-year 106th General Assembly wrapped up late on the evening of Thursday, June 18, 2009, after legislators met for a long 23 weeks. In many ways, this session can be characterized as unprecedented because of a republican majority and the nation’s economic troubles.

For the first time since Reconstruction, the Republicans won the majority in both houses. However, the House Democrats convinced Kent Williams, a Republican from Elizabethton, to vote for himself instead of Republican leader Jason Mumpower for the position of House Speaker. This surprising move leveled the playing field a bit in the House as the varying majorities were created on differing issues.

For better or worse, this session lasted longer than most in recent years primarily because of our extraordinary economic situation. The Budget Process was delayed substantially by Governor Bredesen as he and his staff waited to learn about the federal stimulus package before presenting the actual budget to legislators in late March. The Governor was forced to face the current fiscal year shortfall of over $1 billion making significant cuts to the upcoming fiscal year budget. Eventually, the legislature passed a $29.6 billion budget that largely reflected the one originally proposed by Governor Bredesen.

The receipt of the federal stimulus money caused the administration to plan a careful multi-year budget. Tennessee will partially fund programs with this money for two years and then hope that the economy has recovered enough after two years to continue to fund various state agencies and programs at the same rate. Even with this large influx of money, the administration asked most state entities to cut their budgets by around 15%. The passage of that budget was a struggle as Republicans tried to exercise influence over the budget process but without any new spending, such influence was minimized. Eventually, lawmakers passed a budget that cuts over 700 state workers mostly in mental health, raises the HMO tax from 2% to 5.5%, and causes the business gross receipts tax to be collected by the Department of Revenue instead of by county clerks. Many on both sides of the aisle used the word compassionate to describe this budget because more cuts could have been made, given our troubled economy. Overall, this budget cuts government spending by 10% in the upcoming fiscal year.

The Republicans demonstrated their majority by passing several social pieces of legislation that died in years past without a majority. Perhaps the most debated piece of Republican legislation that passed was the so called “guns in bars” bill. In Tennessee, an individual with a handgun carry permit can tote a sidearm into a restaurant that sells alcohol as long as that individual does not drink. Governor Bredesen vetoed this legislation but was subsequently overridden by both houses. The Republicans also passed their charter schools bill in the waning hours of this session. This legislation expands the number of children eligible to attend charter schools and increases the number of permissible charter schools from 50 to 90. Furthermore, the Republicans attacked abortion by passing a resolution that will put before voters a constitutional amendment that would nullify a 2000 State Supreme Court ruling. Republicans and Democrats compromised on other pieces of legislation including retaining the judicial selection process and combining the operation of the Ethics Commission with the Registry of Election Finance.

When legislators return next January, they will have 44 legislative days to do the state’s work because they used 46 of the 90 days allowed for under the state Constitution during this session. They will likely try and move next session at a faster pace so they can begin their campaigning sooner. However, the unprecedented financial situation that slowed them down this year will still remain next year. Barring some unforeseen and unpredicted strong rebound in our nation’s economy, the state’s budget situation will likely be worse than it was this year. The end will be near for the stimulus money that provides Tennessee with a two-year cushion, and the state’s reserves will continue to decline as more money is taken to close the books.

budget

P SB 2318 by Kyle/HB 2275 by Fitzhugh - Technical corrections to sales and privilege taxes.

Fiscal Note: Dated: March 16, 2009 Decrease state revenue - $250,000 Increase local revenue - $2,700,000/permissive.

Amendment: House Amendment 2 clarifies that the business tax provisions regarding subcontractors who hold a business license or a license from the board of licensing contractors. Senate Amendment 1, as amended, makes the bill. Rewrites the job tax credit in order to simplify the statute. The credit remains substantially unchanged except that the amount is set at $4500 per job regardless of the county in which the job is created. Decreases the minimum job requirement in connection with an investment of at least $1 billion from 1000 to 500 qualified jobs. Repeals the daycare credit because no companies are using it. Allows the industrial machinery credit earned by a taxpayer investing at least $1 billion in the state to be carried forward until completely utilized. Increases the amount of relocation expense credit available to a headquarter facility that has invested at least $1 billion in the state to 500 jobs with no wage requirement and applies a prorated clawback provision. Includes funds spent on computer software in determining whether a company has made the required capital investments for purposes of the data center, headquarters facility, and industrial machinery incentives, emerging credit, and also includes computer software when calculating the credit. Increases the maximum investment period for emerging industry credit from six to eight years. Changes the effective date for computer software revisions connected to economic incentives to January 1, 2008. Extends the $1 billion investment period for purposes of the industrial machinery credit from a maximum of five years to seven years. Extends the investment period for a data center from a maximum of five to seven years. Amends the definition of an emerging industry for purposes of the emerging industry credit by removing the specific exclusion of manufacturing and makes housekeeping changes by removing references to industries, such as call centers, that cannot qualify for the credit. Amends the green energy tax credit by allowing the credit to the green energy manufacturer itself as well as separate companies that are integrated into the green energy manufacturer's operations at its project site. Removes "rents" from the definition of "passive investment income" for purposes of the family-owned non-corporate entity (FONCE) exemption and replaces it with the term "rents from residential property or farm property." Clarifies that for property tax purposes, certain commercial properties such as duplexes and quadplexes can still be deemed residential under the FONCE. Creates a safe harbor rent threshold for shifting property from taxable business to another entity. Changes the amendatory language "an affiliate that is exempt from the tax" to "an affiliate whether or not such affiliate is exempt from the tax" under this provision. Creates a reasonable rental rate provision of up to two percent of appraised value per month. Sets a minimum penalty of $10,000 for failure to disclose transactions involving an intangible expense deduction or a captive REIT dividend received deduction. Authorizes the commissioner to waive the penalty under certain statutory criteria. Requires taxpayers that claim specific statutory exemptions from franchise and excise tax to file an annual exemption applications and imposes a $1000 penalty for failure to file. Amends the definition of "publicly traded REIT" for franchise and excise tax purposes to clarify that the entity must be traded on a regulated national securities exchange of the US or a foreign country. Delays implementation of the remaining Streamlined Sales Tax legislation from July 1, 2009 to July 1, 2011. Removes the preferential tax rate applicable to interstate or international telecommunications sold to businesses. Increases such rate from 7.5 to 9.5 percent. Requires companies that provide television services to pay sales and use tax on any equipment used to provide services to subscribers. Applies the tax equally to companies that provide television services through the use of cable, telephone lines, or direct-to-home satellite. Provides that the existing tax on computer software maintenance contracts applies to any contract covering software located in this state. Provides that the "in-house" computer software exemption applies only if the software created by the taxpayer or its employees and does not apply when the software is created by an employee of another company. Clarifies the application of tax to advertising materials. Provides that the tax applies to final artwork and advertising materials but does not apply to preliminary artwork used by the ad agency solely for conveying concepts or ideas. Clarifies that a hotel must pay tax on the purchase of food and beverages provided to guests as part of the lodging accommodation. Allows a hotel to purchase food and beverages on a resale certificate without payment of tax if the food and beverages are served in a restaurant open to the public. Codifies the existing practice of allowing a credit for tax paid on the aviation fuel sold to an air common carrier and subsequently used by the air carrier in an international flight, which is exempt from the tax. Allocates the state tax collected on ticket sales back to a performing arts center exclusively for use in maintaining and improving the facilities in which the performing arts center is located. Allocates sales tax collected from commercial breeders licensed under the Commercial Breeder Act to the commercial breeder act enforcement and recovery account. Makes several changes to the ten percent local privilege tax levied on tickets to events at a municipal stadium, including exempting events for the benefit of public colleges or universities that use the stadium for a majority of home football games, providing that the state and local sales tax will not apply to the amount of the local privilege tax, and allows the tax to continue after the stadium indebtedness has matured. Provides that sales tax revenue generated by non-sporting events at an indoor sports facility in a county with a metropolitan form of government will be allocated to the Metro convention and visitors bureau rather than the Metro sports authority. Imposes the professional privilege tax on National Basketball Association and National Hockey League players who play games in the state and allocates the proceeds of the tax to the municipality. Specifies the tax is equal to $2500 per game with a three game annual cap. Updates the existing sales and use tax exemption for services provided by one company to its affiliated company by allowing the exemption to apply to any form of entity rather than being restricted only to corporations. Changes effective date of affiliate services exemption to January 1, 2009. Shifts primary administration of the business tax from the local to the state level. Lowers the threshold for required filing of the sales and use tax return from $2500 to $1000. Clarifies that franchise and excise tax quarterly estimated payments must be remitted electronically if the payment exceeds $2500. Authorizes the department of revenue to participate in the Multistate Tax Commission Joint Audit Program. Provides and automatic extension of twelve months in order to file the inheritance tax return. Allows that estate to include a copy of its federal extension with its state tax return filed on the extended due date, in lieu of filing for an extension before the statutory due date. Updates obsolete references to the petroleum tax law. Provides that the penalty for unauthorized use of dyed motor furl will not apply to agricultural vehicles used solely for transferring harvested crops from the field to a storage facility if the distance traveled on the highway is less than five miles. Updates a statute regarding TVA payments in lieu of tax by providing that the department of revenue rather than the comptroller will calculate the payments to local governments due under the statute. Provides that the state will be deemed the prevailing party for purposes of awarding attorneys' fees in any case in which the taxpayer has been found to have committed fraud. Makes changes to the property tax provisions concerning the redemption of property and forced assessments. Removes qualified commercial financing entities from the provision which assesses the stockholder on shares of stock in lieu of assessing the company on its capital stock. Authorizes the department to accept credit and debit cards in payment of titling and registration fees. Authorizes the department to pass on to the registrant any third-party surcharge or convenience fee related to such transactions. Increases from $5 to $5.50 the fees dues the department for noting a lien or an extension of a mortgage on a certificate of title. Clarifies that a post office box is not sufficient proof of residency for purposes of issuing a certificate of title or registration. Clarifies language regarding the applicable registration fees for buses. Authorizes the department to establish a method for accepting electronically captured signatures in connection with title applications. Authorizes the department to extend the period between the issuance of new metal license plates up to a maximum of eight years. Creates a new license plate for company vehicles owned by any automobile manufacturer that is headquartered in this state. Exempts these company vehicles from title and registration fees and sales tax. Allows the manufacturer to apply for an exemption from the wheel tax. Clarifies that trailers used in furtherance of a business must be titled and registered and details such provisions. Trailers not owned by farmers and used for agricultural purposes are not required to be titled and registered. Changes certain statutory language from the "department of safety" to the "department of revenue" in order to reflect the movement of responsibilities between the departments. Makes a housekeeping change to the statutory language requiring that the seller's signature on a bill of sale be notarized. Changes effective date for economic incentives to the investment period beginning July 1, 2008. Adds provision concerning the treatment of prosthetic surgical kits for property tax purposes. Sets the minimum business tax at $22. Requires general contractors to get a copy of a subcontractor's business or contractor's license and keep it on file and specifies that the contractor cannot deduct costs for any unlicensed subcontractor. Corrects a typographical error by changing the word "produced" to "produce." Applies subcontractor deduction to contracts issued after October 1. Provides that clerks will issue initial business license for $15 license fee with no subsequent charges for annual renewals and no additional fee for receiving the application or issuing the license. Allocates $2 per return to the clerks from proceeds of the tax earmarked for computer equipment. Requires transient vendor and flee market fees (67-4-710) to be remitted by clerks to the department for standard distribution. Classifies businesses as wholesale or retail depending on primary activity and requires they pay tax on all sales at wholesale or retail rate. Deletes the long distance and cable box tax provisions. Makes a technical correction to clarify that an interest rate exceeding 24 percent cannot be charged. Senate Amendment 2 creates an exemption for hotel/motel sales and use tax payments relative to complimentary breakfasts sold. Senate Amendment 3 specifies, in regard to the job tax credit for entities with more than $1 billion capital investment, that the limitations otherwise applicable to carrying unused credits forward would not apply and any unused credit may be carried forward until fully utilized, if the commissioners of revenue and economic and community developments have determined that the allowance of such additional carry forward is in the best interests of the state. Senate Amendment 5 revises the provision of the effective date section relative to changes to the job tax, industrial machinery and headquarters relocation credits so that the changes will apply to "all business plans filed on or after July 1, 2009" instead of to "all investment periods beginning on or after July 1, 2008." Senate Amendment 6 corrects the act section numbers referenced in the effective date provision to account for renumbering of sections due to amendments. Senate Amendment 7 revises the provisions regarding taxation of prosthetic surgical kits to clarify that kits leased or consigned for longer than 30 days, with or without a written lease or consignment agreement, will be considered leased tangible personal property assessable to the customer/user. This amendment specifies that the typical stock on hand at the premises of the customer/user will be considered leased tangible personal property unless otherwise documented. This amendment further specifies that for an adjustment in regard to kits withdrawn or relocated within 30 days, an amended tangible personal property scheduled would have to be filed.

Link to Amendment: http://www.capitol.tn.gov/Bills/106/Amend/SA0736.pdf

Senate Status: Finance Tax Subcommittee passed on 6/11/2009 with amendment 1, as amended, and amendment 4; Finance, Ways & Means passed on 6/11/2009 with amendment 1, as amended, and amendment 2; Senate concurred in House amendment 2 on 6/17/2009

House Status: Finance Budget Subcommittee passed on 6/15/2009 with amendment; Finance, Ways & Means passed on 6/15/2009 with amendment; House passed on 6/16/2009 with amendment 2.

Other Status: Sent to the Governor on 6/19/2009.

business taxes

P SB 403 by Henry/HB 529 by Hackworth - Extends joint select committee on business taxes until 2013. Extends end date for joint select committee to study business taxes to June 30, 2013, from June 20, 2009.

Senate Status: Finance, Ways & Means passed on 6/9/2009; Senate passed on 6/12/2009.

House Status: House passed on 6/1/2009.

Other Status: Sent to the Governor on 6/16/2009.

SB 1994 by Norris/HB 2188 by L. DeBerry - Tax credit for contributing to TN rural opportunity fund. Increases to 11% from 10% the credit against combined franchise and excise taxes for financial institution contributions to the Tennessee rural opportunity fund.

Fiscal Note: Dated: February 25, 2009 Decrease State Revenue - $100,000.

Senate Status: Referred to Finance, Ways & Means.

House Status: Referred to Finance Budget Subcommittee.

P SB 2112 by Faulk/HB 2038 by Harrison - Franchise-excise tax credit for industrial machinery. Increases to three years from two years the time within which a business qualifying for franchise-excise tax industrial machinery credit for a capital investment exceeding $1 billion may make the required investment.

Fiscal Note: Dated: March 11, 2009 Decrease state revenue - exceeds $100,000.

Amendment: House amendment 1 makes the bill. Creates a special apportionment of state sales tax revenue to certain local government jurisdictions that own a hotel or inn that is more than 150 years old, and the hotel or inn is operated by a 501(c)(3) non-profit organization. Requires the apportionment to be equal to the amount of state sales tax revenue derived from the sale of goods and services on the premises of the hotel or inn, except for portions earmarked for educational purposes.

Senate Status: Senate passed on 6/18/2009.

House Status: House passed on 6/17/2009 with amendment 1.

Other Status: Sent to the speakers for signatures on 6/18/2009.

SB 2118 by Norris/HB 2198 by L. Miller - Tier 3 economically distressed counties - job tax credit. Designates counties containing areas designated as economically distressed by the federal department of housing and urban development as tier 3 economically distressed counties for franchise-excise job tax credit purposes.

Fiscal Note: Dated: March 11, 2009 Decrease state revenue - $250,000.

Senate Status: Referred to Finance Tax Subcommittee.

House Status: Finance Budget Subcommittee deferred on 6/15/2009 to next calendar.

SB 2119 by Norris/HB 2124 by Sargent - Property leased or rented - medical equipment. Provides that for purposes of determining whether leased property is inventory of merchandise held for exchange, property leased or rented with medical equipment, substances, or implants includes property leased or rented simultaneously regardless of whether it is separately invoiced and whether there is a written lease.

Fiscal Note: Dated: March 17, 2009 Decrease local revenue - $2,424,700.

Senate Status: Referred to Finance Tax Subcommittee.

House Status: Finance Budget Subcommittee deferred on 6/15/2009 to next calendar.

economic development

SB 1203* by Overbey/HB 2085 by Sargent - Tennessee Small Business Investment Company Credit Act. Requires the department to provide a standardized format for applying for the business investment credit. Requires an applicant to complete the following: file an application with the department; pay a nonrefundable application fee of $7,500; submit an audited balance sheet containing an accountant's opinion that the applicant has equity capitalization of $500,000 or more; and have at least two principals, at least one of whom who is primarily located in Tennessee, employed or engaged to manage the funds and who each have a minimum of five years of money management experience in the venture capital or small business investment industry. Authorizes the department to certify partnerships, corporations, trusts, or LLCs, organized on a for-profit basis, which submit an application to be designated as a Tennessee small business investment company if such applicant is located, headquartered, and licensed or registered to conduct business in Tennessee, has as its primary business activity the investment of cash in qualified businesses, and meets the other criteria set forth in this chapter. Requires the department to issue or refuse the certification within 45 days of receiving it. Prohibits insurance companies and their affiliates from controlling certain interests in Tennessee small business investment companies. Caps the aggregate amount of investment tax credits to be allocated to all participating investors of Tennessee business investment companies at $100,000,000. Details qualified investments such companies must make in order to maintain their certification and requires the companies to gain the approval of the department prior to making such investments. Requires a company to invest 60 percent of its designated capital in qualified investments within four years and 100 percent within six years to retain its privileges. Mandates that any such company pay to the department an annual, nonrefundable certification fee of $5,000 before April 1, or $10,000 if later than April 1. Allows a participating investor to earn a credit against the tax imposed to 80 percent of the participating investor's investment of designated capital in such company. Prohibits a participating investor from transferring, agree to transfer, selling, or agreeing to sell the credit under this section until 180 days from the date on which the participating investor invested designated capital.

Amendment: House amendment 1 rewrites the bill. Creates a new economic development program, to be administered by ECD in conjunction with the department of revenue, known as the Tennessee Small Business Investment Company Credit Act (TSBICCA). The TSBICCA authorizes an aggregate maximum of $120,000,000 in investment tax credits, to be offset against the gross premium tax liabilities of certain insurance companies who qualify as participating investors for the purpose of serving as economic development incentives. Requires authorized tax credits be used against tax gross premiums tax liabilities for tax years 2012 through 2019. House amendment 2 adds language that declares profit share percentage distributions first be made to the General Fund for the purpose of offsetting any decrease of revenue that would occur due to the authorization of investment tax credits; subsequent distributions and additional tax revenue generated from the act shall then be allocated to the Rural Opportunity Fund to further support the state's economic development efforts.

Status: Sent to the speakers for signatures on 6/18/2009.

estate tax

SB 785 by Overbey/HB 1878 by McDaniel - Gift tax exemption. Eliminates distinction between Class A and Class B donees for gift tax purposes. Increases gift tax exemption by linking Tennessee law to federal gift tax exemption. Sets tax rate for all gifts to current rate for Class A (family member) donees.

Fiscal Note: Dated: March 2, 2009 Decrease State Revenue - $500,000.

Senate Status: Finance Tax Subcommittee deferred on 3/11/2009 to the last item on the last calendar.

House Status: Referred to Finance Budget Subcommittee.

SB 1200 by Tracy/HB 543 by Litz - Inheritance tax - federal exclusion. Adopts amount of federal exclusion as amount of inheritance tax exemption for decedents dying in 2009 and thereafter.

Fiscal Note: Dated: March 2, 2009 Decrease State Revenue - $9,975,000/FY09-10$39,900,000/FY10-11 and Subsequent Years.

Senate Status: Taken off notice in Finance Tax Subcommittee on 3/18/2009.

House Status: Referred to Finance Budget Subcommittee.

SB 1699 by Overbey/HB 1879 by McDaniel - Revisions to gift and inheritance tax exemptions. Specifies that for the sole purpose of determining net gifts under the gift tax exemption provision, there must be allowed against the net gifts a maximum cumulative lifetime single exemption of an amount equal to $1,000,000. Clarifies that the maximum single exemption permitted under inheritance tax credits provisions must be reduced by an amount equal to the exemption in the gift tax to the extent that it was applied to reduce the decedent's net gifts.

Fiscal Note: Dated: March 2, 2009 Decrease State Revenue - Net Impact - $11,000,000.

Senate Status: Finance Tax Subcommittee deferred on 3/18/2009 to last calendar.

House Status: Referred to Finance Budget Subcommittee.

hall income tax

SB 82 by Stanley/HB 984 by McManus - Hall income tax exemption increased. Increases the Hall income tax exemption for taxpayers 65 years of age or older from $16,200 to $36,000 of income from all sources for single filers. Also increases the Hall income tax exemption for taxpayers 65 years of age or older from $27,000 to $60,000 of income from all sources for taxpayers filing jointly.

Fiscal Note: Dated: February 27, 2009 Decrease State Revenue - $7,096,300/FY09-10 and subsequent years Increase State Expenditures - $11,354,000/One-Time/FY08-09 Decrease Local Revenue - $4,257,700/ FY09-10 and subsequent years.

Senate Status: Taken off notice in Finance Tax Subcommittee on 3/11/2009.

House Status: Referred to Finance Budget Subcommittee.

SB 533 by McNally/HB 345 by Hackworth - Hall income tax exemption for certain persons over 70. Exempts from the Hall income tax a person who is 70 years or older having a total annual income derived from all sources that is less than one-half of the per capita income in Tennessee for the prior calendar year. Also exempts from the tax any persons who file a joint return and either spouse is 70 years of age or older having a total joint income derived from any and all sources that is less than one-half of the per capita income in Tennessee for the prior calendar.

Fiscal Note: Dated: March 2, 2009 Decrease State Revenue - $6,055,900/FY10-11 and Subsequent Years Decrease Local Revenue - $3,633,500/FY10-11 and Subsequent Years.

Senate Status: Taken off notice in Finance Tax Subcommittee on 3/11/2009.

House Status: Referred to Finance Budget Subcommittee.

SB 561 by Norris/HB 953 by Harwell - Hall income tax deduction. Authorizes a Hall income tax deduction for premiums paid by the taxpayer for long-term care insurance for the taxpayer or the taxpayer's spouse or dependent.

Fiscal Note: Dated: February 27, 2009 Decrease State Revenue - $2,464,000/Recurring Increase State Expenditures - $70,000/One-Time Decrease Local Revenue - $1,478,400/Recurring.

Senate Status: Taken off notice in Finance Tax Subcommittee on 3/11/2009.

House Status: Referred to Finance Budget Subcommittee.

HJR 3 by Kelsey - Constitutional amendment - prohibition on income tax. Proposes an amendment to Article II, Section 28 of the state constitution to clarify language that currently prohibits the levying of a tax on any class of income, other than income derived from stocks and bonds, and to prohibit any tax levied on or measured by employer payrolls.

Amendment: House Budget Subcommittee amendment 1 deletes section relative to electronic publication and notification.

House Status: Finance Budget Subcommittee deferred on 6/15/2009 to next calendar.

occupational privilege tax

SB 1421 by E. Stewart/HB 668 by Hackworth - Rates for professional privilege tax. Revises amounts of professional privilege tax to be paid for persons licensed or registered after July 1, 2009, by basing amount upon years a person has been licensed or registered as a professional.

Fiscal Note: Dated: March 26, 2009 Decrease state revenue - $11,576,000/recurring Increase state expenditures - $110,700/one-time $240,900/Recurring.

Senate Status: Referred to Finance Tax Subcommittee.

House Status: Referred to Finance Budget Subcommittee.

property tax

SB 424 by Bunch/HB 871 by Kevin Brooks - Homestead exemptions. Clarifies that $25,000 homestead exemption for individuals with one or more minor children in such individual's custody applies whether or not such individual is the head of a family and only applies upon real property used by the individual and the minor children as a principal place of residence.

Senate Status: Referred to State & Local Government.

House Status: Referred to Judiciary Civil Practice Subcommittee.

PC SB 429 by Bunch/HB 598 by Kelsey - Property tax right of redemption. Changes time period for authorized right of redemption to within one year from the date of the recording of tax deed, as evidenced by county register of deeds records, for all counties except Knox. Present law designates period as within one year from the date the property was sold, as evidenced by order of confirmation, for all counties except Knox. For Knox County, changes time period for authorized right of redemption to within ninety days after the date of the recording of the tax deed from present law time frame of within ninety days after order of confirmation by the court.

Status: Enacted as Public Chapter 156 (effective 7/1/2009).

Link to Public Chapter: http://state.tn.us/sos/acts/106/pub/pc0156.pdf

PC SB 755 by J. Johnson/HB 1177 by Sargent - Eligibility for property tax relief for elderly, disabled. Provides that income attributable to a property owner for purposes of determining eligibility for property tax relief for elderly or disabled homeowners includes the income of a spouse if a joint federal income tax return was filed.

Status: Enacted as Public Chapter 68 (effective 4/15/2009).

Link to Public Chapter: http://www.capitol.tn.gov/Bills/106/Chapter/PC0068.pdf

PC SB 873 by Ketron/HB 889 by Hackworth - Procedures for forced assessment and equalization. Provides that business taxpayer who fails to file a personal property schedule is deemed to have waived objections to forced assessment by assessor (rather than class A misdemeanor). Provides new procedure for mitigation of forced assessment if taxpayer fails to make timely appeal to county board of equalization; mitigation is limited to extent forced assessment exceeds depreciated value of property by 25 percent or more.

Fiscal Note: Dated: February 13, 2009 Increase State Expenditures - Not Significant Increase Local Expenditures - $118,800/Permissive.

Status: Enacted as Public Chapter 163 (effective 5/7/2009).

Link to Public Chapter: http://state.tn.us/sos/acts/106/pub/pc0163.pdf

SB 1181 by Tracy/HB 1180 by Fraley - Homestead exemption for couples with minor children. Specifies that married couples with one or more minor children in the couple's custody are entitled to a $25,000 homestead exemption for real property owned and used as a principal place of residence by the couple.

Senate Status: Referred to Judiciary.

House Status: Taken off notice in Judiciary Civil Practice Subcommittee on 4/7/2009.

PC SB 1277 by Bunch/HB 1601 by Swafford - Reporting requirements for trustees in final settlement. Removes requirement that the trustee must report and make a settlement for all taxes with the commissioner of revenue. Removes requirement that the trustee submit a financial report to certain state and local government officers for purposes of making a final settlement of taxes.

Status: Enacted as Public Chapter 346 (effective 6/3/2009).

Link to Public Chapter: http://state.tn.us/sos/acts/106/pub/pc0346.pdf

SB 1345 by Tate/HB 37 by Hardaway - Collection of delinquent property taxes. Authorizes counties having a charter form of government to begin the collection of delinquent property taxes in the same year in which such taxes become delinquent. Lessens the period of redemption in Shelby County to 90 days instead of one year under the same circumstances as currently authorized for Knox County. Establishes a mechanism for a property owner to deed certain property to a governmental entity.

Fiscal Note: Dated: January 13, 2009 Decrease local revenue - exceeds $5,000.

Senate Status: Referred to State & Local Government.

House Status: Local Government Subcommittee deferred on 4/29/2009 to 2010.

PC SB 1570 by Ketron/HB 1535 by McCormick - Property assessors to intervene in contested cases. Specifies that the division of property assessments has the right to intervene in contested cases before the state board of equalization. Specifies persons who are authorized to represent the assessor of property in contested case hearings before the state board of equalization.

Status: Enacted as Public Chapter 256 (effective 5/20/2009).

Link to Public Chapter: http://state.tn.us/sos/acts/106/pub/pc0256.pdf

SB 1829 by Kyle/HB 1740 by Kelsey - Amended schedule of personal property - time period. Tolls time period for taxpayer to file amended schedule of personal property when taxpayer's personal property account has been audited and the audit reveals that the assessment should be adjusted downward.

Fiscal Note: Dated: February 26, 2009 Decrease Local Revenue - Exceeds $50,000.

Senate Status: Referred to Finance Tax Subcommittee.

House Status: Taken off notice in Local Government Subcommittee on 5/6/2009.

SB 2110 by Overbey/HB 2074 by Fitzhugh - Reimbursement of taxpayers for overpayment. Authorizes county governing body or the governing body of any municipality to reimburse taxpayers for overpayment of taxes due to clerical mistakes. Revises procedures for correction and appeal of property taxes and assessments.

Fiscal Note: Dated: March 4, 2009 Decrease local revenue - net impact - exceeds $20,000.

Amendment: Senate State & Local Government amendment 1 specifies that with respect to forced assessments of tangible personal property for tax year 2007, correction of assessments must be requested by the taxpayer or initiated by the assessor no later than September 1, 2009. Under current law, the board is requires to accept appeals from a taxpayer up to March 1 of the year subsequent to the year in which the time for appeal to the state board began to run. This amendment specifies that the board may not for any reason hear appeals filed after this deadline.

Senate Status: Taken off notice in Finance, Ways & Means on 6/3/2009.

House Status: Taken off notice in State & Local Government on 5/20/2009 after adopting amendment 1 to 1.

SB 2111 by Overbey/HB 2075 by Fitzhugh - Judicial review of action of the state board. Requires that judicial review of action of the state board of equalization be conducted in accordance with the Uniform Administrative Procedures Act. Authorizes reviewing court to remand to board for additional proof upon request of party not represented by counsel before the board and whose case was substantially prejudiced as a result.

Amendment: House Local Government Subcommittee amendment 1 clarifies that there is no prohibition against non-attorney representation.

Senate Status: Taken off notice in State & Local Government on 5/12/2009.

House Status: Taken off notice in State & Local Government on 5/20/2009.

sales tax

PC SB 516 by Kyle/HB 1751 by M. Turner - Reduces sales tax for certain foods from 5.5 to 5 percent. Reduces the sales tax on food and food ingredients from 5.5 percent to five percent, effective July 1, 2010.

Amendment: House amendment 1 rewrites the bill to amend Title 55 concerning the use of funds which are held in trust by motor vehicle dealers, motor vehicle distributors, and motor vehicle manufacturers for the purpose of protecting the interests and rights of private parties to transactions involving the sale or purchase of motor vehicles.

Status: Enacted as Public Chapter 322 (effective 5/28/2009)

Link to Public Chapter: http://state.tn.us/sos/acts/106/pub/pc0322.pdf

SB 657 by Stanley/HB 131 by Hardaway - Report on sunsetting sales tax exemptions. Requires the commissioner of revenue to report by January 15, 2010, on the feasibility of assigning expiration dates in a staggered manner to sales tax exemptions. Specifies that, if determined feasible, each exemption would be reauthorized every 10 years.

Fiscal Note: Dated: February 4, 2009 Increase State Expenditures - Not Significant.

Senate Status: Referred to Finance, Ways & Means.

House Status: Rep. McDaniel’s Study Committee Subcommittee deferred on 5/6/2009 to January 2010.

SB 710 by Tate/HB 7 by Hardaway - Reduces sales tax on food. Reduces sales and use tax on food and food ingredients from 5.5 percent to 4.5 percent.

Fiscal Note: Dated: January 7, 2009 Decrease state revenue - net impact - $91,868,600 Decrease local revenue - $4,422,200 Other Fiscal Impact - Beginning in FY10-11, there will be additional foregone revenue to state and local governments due to the natural growth of taxable food sales. As taxable food sales grow each year, foregone sales tax revenue will increase. Assuming taxable food sales grow by 4.5 percent from FY09-10to FY10-11, total foregone sales tax revenue for FY10-11 would be approximately $4,333,100. Of this amount, the state would forego approximately $4,134,100, and local governments would forego approximately $199,000 as a result of state-shared sales tax apportionment. These foregone amounts will increase each successive year by the rate at which taxable food sales grow in the future.

Senate Status: Taken off notice in Finance Tax Subcommittee on 3/11/2009.

House Status: Finance Budget Subcommittee deferred on 6/15/2009 to next calendar.

SB 760 by Crowe/HB 479 by Hill - Exemption for property/services sold to 501c4 civic league. Expands sales tax exemption for charitable donations to include any tangible personal property or taxable services sold, given, or donated to any civic league or organization not organized for profit but operated exclusively for the promotion of social welfare that is exempt from federal income taxation by the IRS as 501(c)(4) organization.

Fiscal Note: Dated: February 27, 2009 Decrease State Revenue - Net Impact - $263,800 Forgone State Revenue - Exceeds $27,700 Decrease Local Revenue - $111,500 Forgone Local Revenue - Exceeds $9,900.

Senate Status: Taken off notice in Finance Tax Subcommittee on 3/11/2009.

House Status: Finance Budget Subcommittee deferred on 6/15/2009 to next calendar.

SB 1235 by Bunch/HB 810 by Campfield - Amusement tax added to adult-oriented materials. Enacts Food Tax - Adult Materials Tax Swap Act. Lowers food tax to 3% from 5.5%. Holds local governments harmless from loss of revenue. Enacts 25% tax on adult-oriented materials and activities, in addition to any other applicable tax.

Fiscal Note: Dated: March 2, 2009 Decrease State Revenue - Net Impact - $179,391,500/RecurringForgone State Revenue - Exceeds $10,910,100/Recurring Increase State Expenditures - $162,000/One-Time Exceeds $11,372,400/Recurring Decrease Local Revenue - $286,400/Recurring.

Senate Status: Finance Tax Subcommittee deferred on 6/2/2009 to next meeting.

House Status: Referred to Finance Budget Subcommittee.

SB 1236 by Bunch/HB 809 by Campfield - 25% tax on adult entertainment/product advertising. Imposes 25% sales tax on advertising of adult entertainment and adult products in newspapers and other periodicals published on newsprint or bond paper and distributed at least 25 times per year. Tax is in addition to any other applicable tax.

Fiscal Note: Dated: March 4, 2009 Increase state revenue - $62,500/recurring Increase state expenditures - $80,400/one-time $92,000/Recurring.

Senate Status: Taken off notice in Finance Tax Subcommittee on 3/18/2009.

House Status: Referred to Finance Budget Subcommittee.

SB 1392 by J. Johnson/HB 1290 by Casada - Taxes for Web sites located in Tennessee. Provides that hosting a Web site in Tennessee does not establish a physical presence for purposes of sales tax. Creation, development, or modification of a Web site by a Tennessee dealer is taxable only if the customer has a physical presence in Tennessee.

Fiscal Note: Dated: March 5, 2009 Decrease state revenue - net impact - $153,600 Decrease local revenue - $64,900.

Senate Status: Referred to Finance Tax Subcommittee.

House Status: Taken off notice in Finance Budget Subcommittee on 3/11/2009.

SB 1624 by Beavers/HB 1399 by Evans - Food tax reduction in years of surplus. Requires reduction in sales tax rate on food of 0.5 point in next fiscal year when surplus revenues exceed $50,000,000 in current fiscal year.

Fiscal Note: Dated: February 16, 2009 Other Fiscal Impact - The fiscal impact of this bill is dependent upon the fiscal years that state surplus revenue exceeds$50,000,000. In fiscal years when state surplus revenue exceeds $50,000,000, the net decrease to state revenue for the following fiscal year is estimated to exceed $45,715,600; the decrease to local government revenue is estimated to exceed$2,200,600. In addition to these recurring decreases, the state would forgo additional sales tax revenue in subsequent fiscal years due to the natural growth of taxable food sales.

Senate Status: Taken off notice in Finance Tax Subcommittee on 3/11/2009.

House Status: Referred to Finance Budget Subcommittee.

P SB 1741 by Marrero/HB 1947 by Shaw – Solicitations through Tennessee resident. Establishes presumption that a person making sales of taxable, tangible personal property or services is soliciting business through an independent contractor if such person enters into an agreement with a resident of this state under which the resident refers potential customers, if the cumulative gross receipts total $2,000 during the preceding four quarterly periods ending on the last day of February, May, August and November. Specifies that this presumption can be rebutted by proof that the resident did not engage in any solicitation in the state on behalf of such person that would satisfy the nexus requirement of the U.S. constitution during the four quarterly periods in question.

Senate Status: Finance Tax Subcommittee returned to Finance on 6/11/2009 with unfavorable recommendation as the bill received no motion.

House Status: Taken off notice in Finance Budget Subcommittee on 6/2/2009.

SB 1811 by Herron/HB 492 by Tidwell - Municipal economic development zone in distressed areas. Authorizes the creation of a municipal economic development zone in financially distressed communities. Exempts businesses engaging in qualifying sales and located in new construction in a MED zone from charging and collecting 50 percent of the sales and use tax for a period of ten years. Requires all sales and use taxes collected in such zones to be reimbursed to the municipality for certain purposes.

Fiscal Note: (CORRECTED) Decrease state revenue - net impact - Exceeds $1,812,100/recurring Forgone state revenue - Exceeds $100,000/recurring Increase state expenditures - $142,800/one-time Increase local revenue - Net impact - exceeds $1,588,700/fy09-10 - fy18-19 $1,899,300/Recurring/beginning in fy19-20.

Senate Status: Taken off notice in Finance Tax Subcommittee on 3/11/2009.

House Status: Taken off notice in Finance Budget Subcommittee on 4/22/2009.

SB 1849 by Kyle/HB 1231 by Fitzhugh - Reduction of taxes on sale of food. Reduces sales tax on food and food ingredients to 5 percent from 5.5 percent effective July 1, 2010.

Fiscal Note: Dated: February 16, 2009 Decrease State Revenue - Net Impact - $45,825,000 Decrease Local Revenue - $2,205,800 Other Fiscal Impact - Beginning in FY10-11, there will be additional forgone revenue to state and local governments due to the natural growth of taxable food sales. As taxable food sales grow each year, forgone sales tax revenue will increase. Assuming taxable food sales grow by 4.5 percent from FY09-10to FY10-11, total forgone sales tax revenue for FY10-11 would be approximately $2,161,400. Of this amount, the state would forgo approximately $2,062,100, and local governments would forgo approximately $99,300 as a result of state-shared sales tax apportionment. These forgone amounts will increase each successive year by the rate at which taxable food sales grow in the future.

Senate Status: Taken off notice in Finance Tax Subcommittee on 3/11/2009.

House Status: Bill held on clerk's desk.

SB 1914 by L. Finney/HB 1582 by Shaw - Local option sales tax. Repeals provision authorizing the state to impose 2.75% tax on the portion of the sales price of a single article between $1,600 and $3,200. Increases the amount to which the local option sales tax may be applied to $3,200 from $1,600. Provides for annual adjustment based on the percentage increase of the consumer price index.

Fiscal Note: Dated: March 5, 2009 Decrease state revenue - $48,700,000 Increase local revenue - $44,272,700.

Senate Status: Finance Tax Subcommittee deferred on 3/18/2009 to last calendar.

House Status: Taken off notice in Finance Budget Subcommittee on 6/2/2009.

SB 1958 by Burchett/HB 1913 by Tindell - Reimbursement on refund item for sales tax collected. Reduces time period in which dealer can be reimbursed on refunded item for sales tax collected but not yet remitted to commissioner from 90 days to 60 days.

Senate Status: Finance Tax Subcommittee deferred on 3/18/2009 to last calendar.

House Status: Referred to Finance Budget Subcommittee.

Taxpayer transparency act

SB 123 by Ketron/HB 246 by Lynn - Taxpayer Transparency Act. Requires the commissioner of finance and administration to create and maintain a searchable budget database Web site detailing where, for what purpose and what results are achieved for all taxpayer investments in state government. Requires the database to be developed by January 1, 2010.

Fiscal Note: Dated: March 17, 2009 On February 25, 2009, we issued a fiscal note for this bill indicating one-time state expenditures of $800,000 and an increase to recurring state expenditures of $873,500 per year. Based on additional information, the fiscal impact of this bill is estimated as follows: (CORRECTED) Increase state expenditures - exceeds $250,000/one-time Exceeds $150,000/recurring.

Senate Status: Referred to Finance, Ways &Means.

House Status: Referred to Finance Budget Subcommittee.

SB 149 by Ketron/HB 949 by Lynn - Taxpayer Transparency Act. Requires the commissioner of finance and administration, by January 1, 2010, to develop and maintain a searchable budget database Web site detailing state budgetary information.

Fiscal Note: (CORRECTED) Increase state expenditures - exceeds $250,000/one-time Exceeds $150,000/Recurring.

Amendment: Senate amendment 1 makes the bill. Authorizes the comptroller of the treasury to oversee the implementation of the searchable budget database on the government transparency web site and perform audits of the site when necessary.

Senate Status: Senate passed on 6/3/2009 with amendment.

House Status: Taken off notice in Finance Budget Subcommittee on 6/9/2009.

SB 509 by Burchett/HB 301 by Hardaway - Taxpayer Transparency Act. Creates the Taxpayer Transparency Act for the purposes of allowing taxpayers accessibility to details on how state government is spending their tax dollars. Requires the commissioner of finance and administration to develop and make publicly available a single, searchable budget database web site, including the required data for fiscal year 2009-2010. Obligates the web site to update for each fiscal year no later than 30 days following the close of the fiscal year. Requires all state agencies to provide to the commissioner all data that is needed no later than 30 days after the data becomes available.

Fiscal Note: (CORRECTED) Increase state expenditures - exceeds $250,000/one-time Exceeds $150,000/recurring.

Senate Status: Taken off notice in Finance, Ways & Means on 6/18/2009.

House Status: Taken off notice in Finance Budget Subcommittee on 6/2/2009.

SB 990 by Beavers/HB 841 by Weaver - TN Taxpayer and Citizen Protection Act. Requires state agencies that are responsible for the administration of state and local public benefits to verify the identity of each applicant for benefits and to also verify the immigration status of each applicant. Prohibits state agencies from accepting an identification card issued by the state or its political subdivisions, including a driver license, to establish identity or determine eligibility for benefits.

Fiscal Note: Dated: March 30, 2009 Increase state revenue - not significant Increase state expenditures - $805,300/one-time $9,930,900/Recurring Increase federal expenditures - $84,100/recurring Increase local revenue - not significant Increase local expenditures - exceeds $100,000/recurring Other Fiscal Impact - Any decrease in state expenditures as a result of prohibiting the delivery of certain public benefits to illegal immigrants is unquantifiable because it is unknown how many illegal immigrants currently receive such benefits. The process to determine immigrant status will lengthen the application process for many programs within state and local government. This may generate some off setting costs. Such costs are unquantifiable. The Department of Health indicates that limiting participation in the WIC Program jeopardizes approximately $127,951,705 in federal funds to the state. The Department of Children’s Services indicates that limiting participation in Departmental Programs may jeopardize $89,326,500 in federal funds to the state.

Senate Status: Referred to State & Local Government.

House Status: Taken off notice in Judiciary Civil Practice Subcommittee on 4/15/2009.

SB 1272 by Bunch/HB 1390 by Dennis - Tennessee Taxpayer and Citizen Protection Act. Requires every agency or political subdivision in TN, before providing or administering state or local public benefits or federal public benefits, to verify the lawful presence in the U.S. of any person over 18 years of age and applying for such benefits. Provides for the following exceptions: obtaining health care for an emergency medical condition if not related to organ transplant; short-term, noncash, in-kind emergency disaster relief; public health immunizations; soup kitchen, counseling and short-term shelter care; prenatal care; postsecondary education with THEC setting forth policies complying with federal law. Specifies that anyone making a false statement in an affidavit regarding such requirement commits aggravated perjury.

Fiscal Note: Dated: April 3, 2009 Increase state expenditures - $817,900/one-time $9,941,200/Recurring$53,000/incarceration Increase federal expenditures - $84,100/recurring Increase local expenditures - exceeds $100,000/recurring Other Fiscal Impact - Any decrease in state expenditures as a result of prohibiting the delivery of certain public benefits to illegal immigrants is unquantifiable because it is unknown how many illegal immigrants currently receive such benefits. The process to determine immigrant status will lengthen the application process for many programs within state and local government. This may generate some offsetting costs. Such costs are unquantifiable. The Department of Health indicates that limiting participation in the WIC Program jeopardizes approximately $127,951,705 in federal funds to the state. The Department of Children's Services indicates that limiting participation in Departmental Programs may jeopardize $89,326,500 in federal funds to the state.

Senate Status: Referred to State & Local Government.

House Status: Referred to Judiciary Civil Practice Subcommittee.

general bills

P SB 341 by J. Johnson/HB 1026 by Lynn - Sunset - department of revenue. Sunsets the department of revenue on June 30, 2014.

Fiscal Note: Dated: February 10, 2009 Minimal.

Senate Status: Senate passed on 6/8/2009.

House Status: House passed on 4/30/2009.

Other Status: Governor signed on 6/23/2009.

PC SB 351 by J. Johnson/HB 1004 by Lynn - Sunset - state board of equalization. Extends sunset for state board of equalization to June 30, 2015 from June 30, 2008.

Status: Enacted as Public Chapter 61 (effective 4/15/2009).

Link to Public Chapter: http://www.capitol.tn.gov/Bills/106/Chapter/PC0061.pdf

PC SB 492 by Burchett/HB 978 by McCord - Education requirements for public accountants. Authorizes the board of accountancy, upon request of an applicant for a certificate of certified public accountant, to extend, at the board's discretion, the period for completion of the educational requirements for such certificate. –TSCPA bill.•

Status: Enacted as Public Chapter 26 (effective 4/2/2009).

Link to Public Chapter: http://state.tn.us/sos/acts/106/pub/pc0026.pdf

P SB 517 by McNally/HB 1749 by Fitzhugh -

Fiscal Note: Dated: February 23, 2009 Decrease State Expenditures - $151,800 Decrease Local Expenditures - Net Impact - Not Significant/Permissive.

Amendment: House amendment 1 rewrites the bill. Authorizes the ECD to allocate national recovery zone economic development bonds and national recovery zone facility bonds. These bonds are to be allocated among the five large municipalities with a population over 100,000 and all counties in proportion to their relative decline in employment from 2007-2008. Authorizes the Tennessee Local Development Authority (TLDA) to allocate national qualified energy conservation bonds. These bonds are to be allocated among the 15 large municipalities with a population greater than 100,000 and all counties with a population greater than 100,000. These funds are part of the federal American Reinvestment and Recovery Act (ARRA). After bonds are allocated to the local governments by the ECD and TLDA, they will be issued by the local governments.

Senate Status: Finance, Ways & Means passed on 6/18/2009 with amendment; Senate passed on 6/18/2009.

House Status: Finance Budget Subcommittee passed on 6/15/2009 with amendment; Finance, Ways & Means passed on 6/15/2009 with amendment; House passed on 6/17/2009 with amendment 1.

Other Status: Sent to the speakers for signatures on 6/18/2009.

SB 728 by B. Watson/HB 105 by McCormick - Campaign contributions by corporations. Allows representatives of any corporation doing business with the state to make campaign contributions up to the same contribution limits as individuals, LLCs, or partnerships on behalf of the corporation.

Senate Status: Referred to State & Local Government.

House Status: Failed in Elections Subcommittee on 4/8/2009.

SB 1562 by Burchett/HB 710 by Pitts - Tax refund anticipation loans to be made by check. Prohibits a facilitator from providing the proceeds of tax refund anticipation loan in any form other than a check.

Fiscal Note: Dated: February 17, 2009 Minimal.

Senate Status: Taken off notice in Commerce on 4/28/2009.

House Status: Taken off notice in Commerce Utilities & Banking Subcommittee on 4/28/2009.

SB 1710 by Overbey/HB 1937 by Coleman - Stock and security classes. Specifies that any difference in voting, dividend, liquidation, conversion, preference, or redemption rights constitutes a different class of stock as compared to other securities issued by a corporation.

Senate Status: Referred to Commerce.

House Status: Taken off notice in Commerce Utilities & Banking Subcommittee on 4/21/2009.

SB 1904 by B. Marrero/HB 1556 by Richardson - Credits not valued as income for appraisal purposes. Prohibits federal tax credits received from the U. S. government that are used as incentives and the benefits derived from those credits from being valued as income in the appraisal and assessment of such properties. Specifies that these credits include historic tax credits, low income housing tax credits, and new market tax credits. Requires the THDA to provide certification of the award.

Fiscal Note: Dated: March 12, 2009 Decrease local revenue - $2,640,000.

Senate Status: Taken off notice in Finance Tax Subcommittee on 4/1/2009.

House Status: Referred to Finance Budget Subcommittee.

PC SB 1971 by Norris/HB 2190 by L. Turner - Judicial review of board of review decisions. Authorizes non-resident parties to secure judicial review of board of review decisions by filing in the chancery court of the county where the employer is located unless it is a tax case in which case filing would be in Davidson County.

Status: Enacted as Public Chapter 209 (effective 5/13/2009).

Link to Public Chapter: http://state.tn.us/sos/acts/106/pub/pc0209.pdf

SB 2098 by Burchett/HB 2152 by McCord - Corporations filing annual report with revenue. Requires secretary of state, in conjunction with the commissioner of revenue, to promulgate rules and regulations to allow corporations to file annual report with department of revenue, accompanying franchise and excise tax return, for delivery to secretary of state. Imposes $30.00 fee for such filing.

Fiscal Note: Dated: March 30, 2009 Increase state revenue - $342,000/DOR Increase state expenditures - $185,600/one-time/DOR $154,100/Recurring/DOR.

Senate Status: Taken off notice in State & Local Government on 5/26/2009.

House Status: Finance Budget Subcommittee deferred on 5/27/2009 to 2010.

SB 2099 by Burchett/HB 2153 by McCord - Termination of corporate existence. Requires the secretary of state to develop a consolidated form for submission of the information required for the dissolution and termination of a corporation or LLC. Specifies that the filing fee for such form is not to exceed $20.00.

Fiscal Note: Dated: March 24, 2009 Decrease state revenue - $72,000 Increase state expenditures - $9,400/one-time $104,100/Recurring.

Senate Status: Referred to State & Local Government.

House Status: Referred to Judiciary Civil Practice Subcommittee.

SB 2290 by Kyle/HB 2264 by M. Turner - Revises excise tax exemption for FONCEs. Revises the excise tax exemption for certain family-owned non-corporate entities (FONCEs). Includes rents from residential or farm property but not commercial or industrial property and not including golf course playing hole improvements. (Part of Administration Package.)

Fiscal Note: (CORRECTED) Increase state revenue - $25,000,000 (Reflected in the governor’s FY09-10 recommended budget).

Senate Status: Taken off notice in Finance, Ways & Means on 6/15/2009.

House Status: Taken off notice in Finance Budget Subcommittee on 6/17/2009.