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HB0988 • 2026

Cooperatives

AN ACT to amend Tennessee Code Annotated, Title 43, Chapter 16, Part 1 and Section 67-4-102, relative to subsidiaries of agricultural cooperative associations.

Taxes
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Marsh, Haile
Last action
2025-05-15
Official status
Comp. became Pub. Ch. 455
Effective date
Not listed

Plain English Breakdown

The exact effective date is not specified in the official source material, but it states that the act takes effect upon becoming a law based on public welfare requirements.

Agricultural Cooperative Subsidiaries Tax Exemption

This bill changes Tennessee's tax laws to include various types of business entities as subsidiaries of agricultural cooperatives that are exempt from certain taxes.

What This Bill Does

  • Defines 'taxpayer' to mean every corporation, subchapter S corporation, limited liability company, professional limited liability company, registered limited liability partnership, professional registered limited liability partnership, limited partnership, cooperative, joint-stock association, business trust, regulated investment company, REIT, state-chartered or national bank, and state-chartered or federally chartered savings and loan association.
  • Specifies that these taxpayers, if they are subsidiaries controlled by agricultural cooperative associations, do not have to pay a privilege tax for doing business in Tennessee.
  • Requires profits earned by such subsidiary taxpayers to be paid over or used for the benefit of the agricultural cooperative association.

Who It Names or Affects

  • Agricultural cooperative associations and their subsidiaries
  • Tax authorities responsible for collecting taxes from these entities

Terms To Know

taxpayer
Every corporation, subchapter S corporation, limited liability company, professional limited liability company, registered limited liability partnership, professional registered limited liability partnership, limited partnership, cooperative, joint-stock association, business trust, regulated investment company, REIT, state-chartered or national bank, and state-chartered or federally chartered savings and loan association organized as a subsidiary of an agricultural cooperative association.
privilege tax
A type of tax levied on the privilege of doing business for profit in Tennessee.

Limits and Unknowns

  • The exact amount of state revenue loss due to this change cannot be determined with certainty.
  • This bill takes effect upon becoming law based on public welfare requirements.

Bill History

  1. 2025-05-15 Tennessee General Assembly

    Comp. became Pub. Ch. 455

  2. 2025-05-15 Tennessee General Assembly

    Effective date(s) 05/09/2025

  3. 2025-05-15 Tennessee General Assembly

    Pub. Ch. 455

  4. 2025-05-09 Tennessee General Assembly

    Signed by Governor.

  5. 2025-05-01 Tennessee General Assembly

    Transmitted to Governor for action.

  6. 2025-04-30 Tennessee General Assembly

    Signed by H. Speaker

  7. 2025-04-29 Tennessee General Assembly

    Signed by Senate Speaker

  8. 2025-04-28 Tennessee General Assembly

    Enrolled and ready for signatures

  9. 2025-04-21 Tennessee General Assembly

    Comp. SB subst.

  10. 2025-04-21 Tennessee General Assembly

    Sponsor(s) Added.

  11. 2025-04-21 Tennessee General Assembly

    Passed H., Ayes 92, Nays 0, PNV 0

  12. 2025-04-21 Tennessee General Assembly

    Subst. for comp. HB.

  13. 2025-04-17 Tennessee General Assembly

    H. Placed on Regular Calendar for 4/21/2025

  14. 2025-04-17 Tennessee General Assembly

    Placed on cal. Calendar & Rules Committee for 4/17/2025

  15. 2025-04-17 Tennessee General Assembly

    Rec. for pass; ref to Calendar & Rules Committee

  16. 2025-04-17 Tennessee General Assembly

    Rec. for pass by s/c ref. to Finance, Ways, and Means Committee

  17. 2025-04-16 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/17/2025

  18. 2025-04-15 Tennessee General Assembly

    Rcvd. from S., held on H. desk.

  19. 2025-04-14 Tennessee General Assembly

    Sponsor(s) Added.

  20. 2025-04-14 Tennessee General Assembly

    Engrossed; ready for transmission to House

  21. 2025-04-14 Tennessee General Assembly

    Passed Senate, Ayes 32, Nays 0

  22. 2025-04-11 Tennessee General Assembly

    Placed on Senate Consent Calendar 2 for 4/14/2025

  23. 2025-04-09 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2025

  24. 2025-04-08 Tennessee General Assembly

    Sponsor(s) Added.

  25. 2025-04-08 Tennessee General Assembly

    Recommended for passage, refer to Senate Calendar Committee

  26. 2025-04-01 Tennessee General Assembly

    Placed on Senate Finance, Ways, and Means Committee calendar for 4/8/2025

  27. 2025-04-01 Tennessee General Assembly

    Action deferred in Senate Finance, Ways, and Means Committee to 4/8/2025

  28. 2025-03-25 Tennessee General Assembly

    Placed on Senate Finance, Ways, and Means Committee calendar for 4/1/2025

  29. 2025-03-18 Tennessee General Assembly

    Action deferred in Senate Finance, Ways, and Means Committee to 4/1/2025

  30. 2025-03-12 Tennessee General Assembly

    Sponsor(s) Added.

  31. 2025-03-11 Tennessee General Assembly

    Placed on Senate Finance, Ways, and Means Committee calendar for 3/18/2025

  32. 2025-03-05 Tennessee General Assembly

    Placed behind the budget

  33. 2025-02-27 Tennessee General Assembly

    Refer to Senate Finance, Ways & Means Committee

  34. 2025-02-27 Tennessee General Assembly

    Recalled from Senate Calendar Committee

  35. 2025-02-26 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 3/5/2025

  36. 2025-02-26 Tennessee General Assembly

    Recommended for passage, refer to Senate Calendar Committee

  37. 2025-02-19 Tennessee General Assembly

    Placed on Senate Energy, Ag., and Nat. Resources Committee calendar for 2/26/2025

  38. 2025-02-12 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate Energy, Ag., and Nat. Resources Committee

  39. 2025-02-11 Tennessee General Assembly

    Assigned to s/c Finance, Ways, and Means Subcommittee

  40. 2025-02-10 Tennessee General Assembly

    P2C, ref. to Finance, Ways, and Means Committee

  41. 2025-02-10 Tennessee General Assembly

    Introduced, Passed on First Consideration

  42. 2025-02-06 Tennessee General Assembly

    Intro., P1C.

  43. 2025-02-05 Tennessee General Assembly

    Filed for introduction

  44. 2025-02-05 Tennessee General Assembly

    Filed for introduction

Official Summary Text

Under present law, all corporations organized as subsidiaries and controlled by any agricultural cooperative associa
tion are not considered corporations organized for profit and doing business in Tennessee, or subject to any privilege tax for the privilege of doing business for profit in Tennessee where all profits earned by such subsidiary corporations are paid over t
o
or expended for the benefit of the agricultural cooperative associations, with the result that the activities carried on by the corporations eventually promote and benefit the agricultural interests of this state.

This bill specifies that the tax treatm
ent described above applies to "taxpayers" organized as a subsidiary and controlled by one or more agricultural cooperative associations. This bill defines "taxpayer" to mean every corporation, subchapter S corporation, limited liability company, profess
i
onal limited liability company, registered limited liability partnership, professional registered limited liability partnership, limited partnership, cooperative, joint-stock association, business trust, regulated investment company, REIT, state-chartered

or national bank, or state-chartered or federally chartered savings and loan association.

Current Bill Text

Read the full stored bill text 
SENATE BILL 1002
By Haile

HOUSE BILL 988
By Marsh

HB0988
002978
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 43,
Chapter 16, Part 1 and Section 67-4-102, relative
to subsidiaries of agricultural cooperative
associations.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 43-16-148, is amended by deleting
the section and substituting:
A taxpayer, as defined in § 67-4-2004, organized as a subsidiary and controlled
by one (1) or more agricultural cooperative associations formed in accordance with the
laws of this state shall not be considered as a taxpayer organized for profit and doing
business in this state, or subject to a privilege tax levied by any law as a tax for the
privilege of doing business for profit in this state. It is the legislative intent to exempt by
this section subsidiary taxpayers controlled by agricultural cooperative associations,
where any profits earned by a subsidiary taxpayer is paid over to or expended for the
benefit of the agricultural cooperative association or associations, with the result that the
activities carried on by subsidiary taxpayers eventually promote and benefit the
agricultural interests of this state.
SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.