Tennessee § 67-4-713 - Credits.

§ 67-4-713. Credits.

The following credits may be taken by persons filing and paying the tax imposed by this part: For persons filing returns and paying taxes due under this part, the pro rata portion of any privilege tax paid under any provisions of title 56, chapter 4, part 4, title 57, chapter 5, or parts 4 and 5 of this chapter, extending past June 1, 1971, and repealed as of that date; Except as provided in subdivision (a)(3), personal property taxes properly paid pursuant to chapter 5, part 5 or part 13 of this title; Personal property taxes are allowable as a credit only to the extent that the property is located at the place of business covered by the return required by this part and the property is taxed by the same city or county that receives the allocation of tax under § 67-4-724; Personal property taxes are allowable as a credit only for taxes paid either during the tax period covered by the return or prior to the due date of the return; Personal property taxes assessed pursuant to audit and subsequently paid may be taken as a credit either on the business tax return filed for the year in which the additional personal property tax was paid or on the return covering the immediately previous year. If the credit is taken in the previous year, an amended business tax return must be filed for that year; Notwithstanding subdivision (a)(2)(A), providers of video programming services, as defined in § 67-6-102, shall be allowed the credit provided by this subdivision (a)(2) to the extent that the property is located in a jurisdiction to which the taxpayer's receipts are sourced in accordance with § 67-4-717 and the property is taxed by that jurisdiction; In cases where a lease or rental agreement provides specifically for payment of personal property taxes by the lessee or renter to the lessor or owner, personal property taxes paid by the lessee or renter to the lessor or owner covering any period of time extending beyond June 1, 1971, arising from assessments referred to in subdivision (a)(2) and made against the lessor or owner. The credit authorized in this subdivision (a)(3) to the lessee or renter may not be taken by the lessor or owner; Personal property taxes paid pursuant to a special school district tax levied by public or private act. The credit established by this subdivision (a)(4) shall only apply in any county having a population of not less than twenty-eight thousand two hundred fifty (28,250) nor more than twenty-eight thousand three hundred (28,300), or not less than forty-nine thousand four hundred (49,400) nor more than forty-nine thousand five hundred (49,500), according to the 1980 federal census or any subsequent federal census; and The amount of personal property taxes that would be due and owing pursuant to chapter 5, part 5 of this title, but for the fact that pursuant to a lawful agreement between the person and a local governmental unit or instrumentality the person's personal property has been transferred to a governmental unit or instrumentality; provided, that: The person shall be eligible for such credit only to the extent of the tax generated from its receipts for services rendered by such person to an affiliated person; Either person directly owns or controls eighty percent (80%) or more of the other, or eighty percent (80%) or more of both persons is directly or indirectly owned or controlled by a common parent; This subdivision (a)(5) is not affirmatively rejected by a two-thirds (2/3) vote of the legislative body of the county or municipality, whichever is appropriate, exercising jurisdiction over the governmental unit or instrumentality; and Subdivision (a)(5)(C) shall be retroactive to tax years beginning on or after January 1, 1999, with respect to agreements in effect on that date. In no case shall the total credits provided in this section be used to offset more than fifty percent (50%) of the taxpayer's liability as calculated in § 67-4-709. Acts 1971, ch. 387, § 14; 1972, ch. 850, § 13; 1973, ch. 208, § 4; 1973, ch. 242, §§ 1, 2; 1973, ch. 260, § 1; 1975, ch. 257, § 1; 1983, ch. 136, § 1; T.C.A., § 67-5814; Acts 1984, ch. 832, § 31; 1985, ch. 392, §§ 1, 2; 1990, ch. 898, § 4; 1990, ch. 1093, § 1; 1997, ch. 383, § 1; 1999, ch. 454, § 1; 2001, ch. 273, §§ 1, 2; 2002, ch. 856, § 9c; 2009, ch. 530, §§ 78-81; 2010, ch. 1134, § 44; 2013, ch. 313, §§ 14, 15. Code Commission Notes. Former subdivision (a)(7), concerning credit for real estate taxes attributable to an underground storage tank, was deleted as obsolete by authority of the code commission in 2006. Compiler's Notes. Acts 1999, ch. 454, § 2 provided that subdivision (a)(7) applies to tax years beginning after January 1, 1999. Acts 2002, ch. 856 § 14(i) provided that the 2002 amendment by § 9 of that act shall apply to tax years ending on or after September 1, 2002. Acts 2002, ch. 856, § 13 provided that no expenditure of public funds pursuant to that act shall be made in violation of the provisions of Title VI of the Civil Rights Act of 1964, as codified in 42 U.S.C. § 2000 d. Acts 2013, ch. 313, § 1 provided that the act, which amended subdivision (a)(2), shall be known and may be cited as the “Uniformity and Small Business Relief Act of 2013.” Acts 2013, ch. 313, § 23 provided that the act, which amended subdivision (a)(2), shall apply to tax periods that begin on or after January 1, 2014. For tables of U.S. decennial populations of Tennessee counties, see Volume 13 and its supplement. Amendments. The 2013 amendment, effective January 1, 2014, in (a)(2), substituted “receives the allocation of tax under§ 67-4-724 ” for “levied the tax under this part” at the end of (A) and added (D). Effective Dates. Acts 2013, ch. 313, § 23. January 1, 2014. Textbooks. Tennessee Jurisprudence, 23 Tenn. Juris., Taxation, § 77. Law Reviews. Building a House of Cards: A Policy Evaluation of Tennessee's Tax Reform Act of 2002 with Emphasis on Fairness to the Poor (Robert F. Parsley), 70 Tenn. L. Rev. 1177 (2003). Selected Tennessee Legislation of 1983 (N. L. Resener, J. A. Whitson, K. J. Miller), 50 Tenn. L. Rev. 785 (1983). Cited: Arkansas-Best Freight System, Inc. v. Cochran, 546 F. Supp. 915, 1982 U.S. Dist. LEXIS 18281 (M.D. Tenn. 1982); IBM Credit Corp. v. County of Hamilton, 830 S.W.2d 77, 1992 Tenn. App. LEXIS 65 (Tenn. Ct. App. 1992).