House Bill 988, sponsored by Marsh, amends Tennessee Code Annotated to provide a tax exemption for certain subsidiaries of agricultural cooperative associations. The bill specifically states that a taxpayer organized as a subsidiary and controlled by one or more agricultural cooperative associations will not be considered a taxpayer organized for profit or subject to privilege tax for doing business in the state. This exemption is intended to ensure that any profits earned by these subsidiaries are directed back to the agricultural cooperative associations, thereby promoting and benefiting the agricultural interests of Tennessee.

The bill replaces the existing language in Section 43-16-148 with this new provision, emphasizing the legislative intent to support agricultural cooperatives by alleviating tax burdens on their subsidiaries. The act is set to take effect immediately upon becoming law, highlighting its urgency in supporting the agricultural sector.

Statutes affected:
Introduced: 43-16-148