Ten­nessee Sen­ate advances near­ly $2 bil­lion busi­ness tax cut, refund to pre­vent law­suit

Tennessee Senate advances nearly  billion business tax cut, refund to prevent lawsuit

The Ten­nessee Sen­ate on Thurs­day approved a near­ly $2 bil­lion tax and refund for busi­ness­es, a pro­pos­al designed to pre­vent threats of a poten­tial law­suit even as crit­ics warned the so-called solu­tion was rushed with­out being prop­er­ly vet­ted and shroud­ed in mys­tery.
Start­ing last fall, Repub­li­can leg­isla­tive lead­ers say a law firm rep­re­sent­ing a large group of busi­ness­es con­tact­ed the state to ques­tion the legal­i­ty of Tennessee’s 90-year-old fran­chise tax and demand­ed a refund. In response, Gov. Bill Lee ini­tial­ly pro­posed offer­ing busi­ness­es $1.2 bil­lion in refunds and then an ongo­ing $410 mil­lion in tax breaks.
That amount has since been tweaked to $1.56 bil­lion in refunds and $393 mil­lion in tax breaks, total­ing $1.95 bil­lion.
“This bill will put this issue behind …