TBA Law Blog

Posted by: Stacey Shrader Joslin on Apr 5, 2021

Tennessee Sen. John Stevens, R-Huntingdon, tells the Tennessee Star that his bill to remove a $400 annual “privilege tax” imposed on certain professions, including the legal profession, is still in play but likely will see changes as budget negotiations continue in the coming weeks. Stevens told the Senate Finance, Ways and Means Revenue Subcommittee last week that any decrease in state revenue resulting from SB 884 would have to be offset by programming cuts. The privilege tax was originally levied on 22 professions. The General Assembly approved legislation in 2019 to eliminate the tax for 15 of those. Nearly 200,000 professionals still pay the tax. Total elimination of the tax would cost the state about $67 million in revenue, Stevens said. The TBA has made eliminating the professional privilege tax one of its most important legislative priorities and is continuing to lobby the General Assembly on this issue. Legislators need to hear from their constituents that eliminating this discriminatory tax is important to them. Find your legislators and their contact info here.