Senate Bill 131, also known as House Bill 423, amends Tennessee Code Annotated to clarify the status of subsidiaries controlled by agricultural cooperative associations. The bill deletes the existing Section 43-16-148 and replaces it with new language that specifies that all business entities organized as subsidiaries and controlled by agricultural cooperatives are not to be considered for-profit entities. Consequently, these subsidiaries will not be subject to privilege taxes typically levied on businesses operating for profit in the state.

The intent of this legislation is to exempt these subsidiary entities from taxation, provided that any profits they generate are directed back to the agricultural cooperative associations. This aims to ensure that the activities of these subsidiaries ultimately support and enhance the agricultural interests within Tennessee. The act is set to take effect immediately upon becoming law, emphasizing its importance for the public welfare.

Statutes affected:
Introduced: 43-16-148