Plain English Breakdown
The official source material does not provide specific details on how profits must be used to benefit agricultural cooperative associations, leaving this requirement unclear.
Agricultural Cooperative Subsidiary Tax Exemption
This bill changes Tennessee's tax laws to exempt certain types of agricultural cooperative subsidiaries from paying privilege taxes in the state.
What This Bill Does
- Defines 'taxpayer' to include various business structures like corporations, LLCs, partnerships, and other legal entities that are part of or controlled by agricultural cooperatives.
- Exempts these defined taxpayers from Tennessee's privilege tax if they operate as a subsidiary of an agricultural cooperative association.
- Specifies that the exemption applies regardless of whether the subsidiary is structured as a corporation, LLC, partnership, or another type of legal entity.
Who It Names or Affects
- Agricultural cooperative associations and their subsidiaries in Tennessee.
- Tax authorities responsible for collecting privilege 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, or state-chartered or federally chartered savings and loan association that is part of or controlled by 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 financial impact on state revenue cannot be precisely determined.
- This bill does not specify how profits must be used to benefit agricultural cooperative associations.