Cooperatives - As enacted, specifies that the privilege tax exemption for subsidiaries of agricultural cooperatives applies without regard to whether the subsidiary was formed as a corporation, limited liability company,, the official text

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Staie ef J ennessee

                             PUBLIC CHAPTER NO. 455

                                                    SENATE BILL NO. 1002

                                          By Haile, Southerland, Yager, Reeves

                                            Substituted for: House Bill No. 988

                                    By Marsh, Hale, Shaw, Renea Jones, Crawford

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 are 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.
         SENATE BILL NO. 1002

PASSED:  April 21, 2025

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                         -'         RANDY ~NALLY

                             SPEAKER OF THE SENATE

                         C

                         CAMERON S!XTON, SPEAKER
                         HOUSE OF REPRESENTATIVES

vV\c, ~ APPROVED this               2025
         day of              ,4 /\
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         BILL LEE, GOVERNOR