Tennessee § 67-2-102 - Imposition, rate and collection of tax.

§ 67-2-102. Imposition, rate and collection of tax.

An income tax shall be levied and collected annually on incomes derived by way of dividends from stocks or by way of interest on bonds of each person, partnership, association, trust and corporation in the state of Tennessee who received, or to whom accrued, or to whom was credited during any year income from the sources enumerated in this section, except as otherwise provided in this chapter. The rate of the tax imposed by this chapter shall be: For any tax year that begins on or after January 1, 2017, and prior to January 1, 2018, four percent (4%); For any tax year that begins on or after January 1, 2018, and prior to January 1, 2019, three percent (3%); For any tax year that begins on or after January 1, 2019, and prior to January 1, 2020, two percent (2%); For any tax year that begins on or after January 1, 2020, and prior to January 1, 2021, one percent (1%); and For any tax year that begins on or after January 1, 2021, and for subsequent tax years, zero percent (0%). Acts 1931 (2nd Ex. Sess.), ch. 20, § 1; 1937, ch. 117, § 1; 1937, ch. 297, § 1; C. Supp. 1950, § 1123.1; modified; Acts 1967, ch. 176, § 2; T.C.A. (orig. ed.), §§ 67-2602, 67-2603; Acts 1985, ch. 395, § 2; 2016, ch. 1064, § 1; 2017, ch. 181, § 13. Compiler's Notes. Acts 2016, ch. 1064, § 4, provided that the act, which amended this section, shall apply to tax years beginning on or after January 1, 2016. Acts 2017, ch. 181, § 1 provided that the act, which amended this section, shall be known and may be cited as the “Improving Manufacturing, Public Roads and Opportunities for a Vibrant Economy (IMPROVE) Act” or the “2017 Tax Cut Act.” Acts 2017, ch. 181, § 38 provided that the act, which amended this section, shall apply to tax years beginning on or after January 1, 2017. Amendments. The 2016 amendment substituted “five percent (5%)” for “six percent (6%)” near the beginning of the section. The 2017 amendment, in the present introductory paragraph, substituted “shall be levied and collected annually” for “in the amount of five percent (5%) per annum shall be levied and collected” in the first sentence, and added the introductory clause; and added (1)-(5). Effective Dates. Acts 2016, ch. 1064, § 4. May 20, 2016. Acts 2017, ch. 181, § 38. April 26, 2017. Cross-References. Receipt and distribution of tax revenues from annexed areas, § 6-51-115 . Textbooks. Tennessee Jurisprudence, 23 Tenn. Juris., Taxation, § 16. Law Reviews. Comptroller v. Wynne and the Futile Search for Non-Discriminatory State Taxation, 67 Vand. L. Rev. En Banc 283 (2014). In the Trade or Business of an Isolated Sale of Real Estate (Mark A. Rentenbach and Joseph A. Sowell III), 51 Tenn. L. Rev. 319 (1984). The Dormant Coordination Clause, 67 Vand. L. Rev. En Banc 269 (2014). Why Wynne [Maryland State Comptroller of the Treasury v. Wynne , 64 A.3d 453 (Md. 2013)], Worries Me, 67 Vand. L. Rev. En Banc 207 (2014). Why Wynne Should Win, 67 Vand. L. Rev. En Banc 217 (2014). Wynne: Lose Or Draw?, 67 Vand. L. Rev. En Banc 245 (2014). Attorney General Opinions. Inapplicability of Hall Income Tax to withdrawals from IRA's or Keogh plan accounts, OAG 99-136 (7/8/99). Applicability of Hall income tax to capital gain distributions from investment trusts and mutual funds, OAG 99-164 (8/19/99).