House Bill 988 amends Tennessee Code Annotated to provide a tax exemption for certain subsidiaries of agricultural cooperative associations. Specifically, it replaces the existing language in Section 43-16-148 with new provisions that state 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. The intent of this legislation is to ensure that any profits earned by these subsidiaries are directed towards benefiting the agricultural cooperative associations, thereby supporting the agricultural interests of Tennessee.

The bill emphasizes the legislative intent to promote the agricultural sector by exempting these subsidiary taxpayers from taxation, which is aimed at fostering an environment where profits can be reinvested into the cooperative associations. This change is expected to encourage the growth and sustainability of agricultural cooperatives in the state, ultimately benefiting the broader agricultural community. The act will take effect upon becoming law, highlighting its urgency in supporting local agricultural interests.

Statutes affected:
Introduced: 43-16-148