March 22, 2018 | Tennessee Chamber of Commerce & Industry
March 22, 2018
Tennessee Chamber Opposes Expanded County Property Tax on Manufacturers
Legislation proposed to stop new tax treatment
 
This week, Tennessee Chamber leadership voted to support legislation to overturn a new tax imposed by a local property tax office’s audit process. A recent decision by the Moore County property assessor redefines whiskey barrels for the sole purpose of collecting additional tax revenue. This decision came as a surprise, since for the past 150 years whiskey barrels have not been included in the assessment of local property taxes. For Tennessee’s largest distiller, Jack Daniel’s in Lynchburg, Tennessee, the tax would mean an additional local property tax bill of nearly $3 million. If Moore County is allowed to impose this new tax, we are certain additional counties with distilleries will follow suit. 

For the business community in Tennessee, it is important to take a stand against any attempt by local property assessors to make sweeping expansions of property taxes on local business. Already, business and industry in Tennessee pay substantial amounts in local property tax that support local communities. Unlike a number of other states that we compete against, Tennessee taxes both tangible and real property. The expansion of local property taxes is a real issue we hear about from industry across the Volunteer state.  We encourage you to contact your legislators and tell them, you support this legislation to stop the expansion of property taxes .   The proposal is currently pending in both House and Senate Committees ( HB 2038 Rep. Alexander (R-Winchester) / SB 2016 Sen. Yager (R- Kingston).    
Impacts for Federal Tax Reform on State Tax Liability

Business cheered when President Trump signed the Federal Tax Cuts and Jobs Act last December. However, the net result is while the federal tax rates were lowered, the corporate tax base was broadened to compensate.  An unintended consequence for states ( like Tennessee, who match the federal tax base ) is that the scope of state tax liability for state franchise and excise taxes was also increased. Without legislative action at the state level many businesses will pay more in state business tax than they did last year, even though their business operations have stayed the same.

The Tennessee Chamber’s tax committee has spent the past two months analyzing the impact of federal tax reform on business taxes in Tennessee. There are still many unknowns but the Tennessee Chamber has worked with Senator John Stevens (R-Huntington) and Rep. Gerald McCormick (R-Chattanooga) to file SB 2119 / HB 2310 as a placeholder to address this issue for the business community. In the coming weeks, we will be asking the business community, local chambers of commerce and economic development professionals to weigh in with their legislators about this important issue.   

It is important to note. A number of our surrounding states are working to enact changes to their state business taxes to mitigate any negative impacts on business from federal reform.  We must act to keep Tennessee’s tax structure competitive.
Tennessee General Assembly: Weekly Calendars
Senate’s weekly calendar click  HERE .
House of Representative’s weekly committee calendar click  HERE
House of Representative’s weekly subcommittee calendar click HERE
 
Additional Meetings
Monday , March 26, 2018
  • 1:30pm Joint Government Operation – *Rule Review* meets in House Hearing Room 3. Agenda
  • 2:30pm Senate Finance: Appropriations Subcommittee meets in Senate Hearing Room 2. Agenda
Tuesday, March 27, 2018
  • Approx. 9:00am Finance: Appropriations Subcommittee
Wednesday, March 28, 2018
  • 8:30am Senate Floor Session

Congratulations to the following committees that closed this week. This brings the total number of closed committees to 10. Each are subject to the call of the chair.
CLOSED: House Consumer & Human Resources Committee
CLOSED: House subcommittee for Agriculture & Natural Resources
CLOSED: House subcommittee for Transportation
CLOSED: Senate Commerce & Labor Committee
CLOSED: Senate Transportation & Safety 

Most standing committees have called last calendar and may conclude their business next week.
Legislative Retirements Bring Stark Reality / Opportunities for TN Chamber
New members usher in new era of leadership supporting business issues

Senator Mark Norris confidently walked to the legislative podium on Wednesday, buttoned his suit jacket, and adjusted his glasses. He proceeded to flawlessly present a work based learning bill on behalf the Tennessee Chamber. This was likely the final bill he will carry on behalf of business & industry in Tennessee. It is expected Norris will soon be confirmed by the U.S. Senate to the federal judiciary.  Senator Norris has been a stalwart in the legislature, many have noted that nothing major happens without sign off from the Senate majority leader and his staff. Following the Republican takeover of the upper chamber in 2007, Norris immediately assumed the Majority Leader position and has shepherded through some of the most productive business enactments in recent memory. His accomplishments include tort reform, workers’ compensation reforms, and major workforce initiatives, including the tremendously popular LEAP programs. Last year he paved the path of compromise on the IMPROVE act which enhanced Tennessee’s infrastructure and included the single sales factor for Tennessee manufacturers. At the podium, Norris’s effortless style, intellect and experience is never off guard in any situation. When one Senate Education committee member commented that the work based learning proposal Norris was presenting was not funded in the Governor’s budget, Norris didn’t miss a beat. He quipped that since he carries the Governor’s budget through the legislature he is confident that getting the legislation funded will not be a problem. Add another good deed to Norris’s legacy of supporting Tennessee’s business community.

Over on the House side this week, Rep. Jimmy Eldridge held his last meeting as Chair of the powerful Consumer and Human Resources committee.  It was a bittersweet moment for Eldridge who recently announced he will seek the position of city mayor in his hometown of Jackson, Tennessee.  Eldridge, while serving in the House, has sponsored a number of major Tennessee Chamber initiatives. The Chairman frequently brags that no major legislation opposed by the Chamber and the business community has ever cleared his committee.

In addition to Norris and Eldridge, there are a number of significant retirements in the Tennessee General Assembly. They include House Finance Chairman Charles Sargent, Deputy Speaker Steve McDaniel and Senate Caucus Chairman Bill Ketron to name just a few of the many legislators, who have championed a positive business climate and will not be seeking re-election. And the list goes on.  The Tennessee Chamber has maintained a number of strong relationships that have produced strong results for the business community. With almost 30 retirements in 2018, we have a great opportunity to grow new relationships with incoming members, but it takes your help to foster these relationships . During the upcoming election cycle, we encourage you to meet with all candidates and inform them about issues that are important to you and business in your community.  Our success in future years depends on you, our grassroots network.  The Tennessee Chamber will be holding events and meeting with candidates across the state. We look forward to seeing you once the legislature adjourns. 

The Tennessee Chamber of Commerce & Industry/Tennessee Manufacturers Association (TMA), is pleased to announce the 2018 TMA Statewide Tour .  This 13 date tour will feature TMA’s Denise Rice, who will update attendees on the state of Tennessee manufacturing, provide a recap on Tennessee’s 2018 Legislative Session & its impact on manufacturing, and conclude with a Q&A period.

Locations include: Franklin, Maryville, Clinton, Chattanooga, Knoxville, Cleveland, Memphis, Jackson, Gallatin, Nashville, Smyrna/Murfreesboro, Kingsport and Morristown

Three sponsorship levels are available: Presenting, Gold and Silver. Please contact Suzie Lusk for more information. Register at www.tnmfg.org or call (615) 256-5141.
Haslam Administration Proposes Final Amendment Funding
$74 million non-recurring funds includes $30m school safety and
$10m Aviation Economic Development Grants

NASHVILLE – Tennessee Gov. Bill Haslam today proposed $30 million to improve school safety across the state in the amendment to the fiscal year 2018-19 budget proposal to be considered by the General Assembly in the coming weeks.

The funding includes $25 million in nonrecurring and $5.2 million in recurring school safety grants. Earlier this month, the governor appointed a School Safety Working Group to review school safety in Tennessee and provide recommendations to enhance the security of school children. In the coming days, the working group will submit options for consideration that will serve as a basis for state action and approved school safety measures.

“Our children deserve to learn in a safe and secure environment and I’ve asked the working group to make specific recommendations on school safety measures,” Haslam said. “These additional school safety funds, which include doubling the current amount of recurring funding we have through our school safety grants, will provide our schools with additional resources to meet their specific needs.”

The budget amendment also contains $3 million in nonrecurring funds for grants to provide funding for school districts to address the extra costs associated with purchasing buses equipped with seat belts.

Other notable investments in the  FY 18-19 budget amendment  include:
  • $5 million in nonrecurring broadband accessibility grants, in addition to the $10 million initially included in the FY 18-19 budget. The governor’s Broadband Accessibility Act became law in 2017 and committed $30 million in grants over three years.
  • $9 million in nonrecurring funds to purchase equipment at the 27 Tennessee Colleges of Applied Technology to improve and modernize a broad variety of workforce development programs.
  • An additional $1 million in recurring funds to provide mental health treatment and recovery services as part of TN Together – the governor’s comprehensive plan to end the opioid crisis in Tennessee.
  • $2 million in nonrecurring funds for an addiction services research program at the University of Tennessee Health Science Center in support of TN Together
  • $10 million in nonrecurring funds for the Aeronautics Development Fund to create jobs and investment opportunities in Tennessee’s aviation industry.

The amendment includes $74 million in nonrecurring funds and $9.8 million in recurring funds.

The budget amendment is traditionally introduced in the final weeks of the legislative session for consideration and approval by the General Assembly. Finance and Administration Commissioner Larry Martin presented the budget amendment to the House and Senate Finance committees Tuesday.
VW Announces Expansion in Chattanooga
Plans To Invest $340M to Produce New SUV

USA Today (3/19, Bomey) reports that the Volkswagen Group announced on Monday that “it would add a third vehicle to its Chattanooga, [Tennessee] plant,” and as a result “VW said it would spend $340 million to ready the Chattanooga plant for production of the new model.” USA Today adds that the company has already invested $900 million to ready the facility to produce another vehicle model, the Atlas. VW US CEO Hinrich Woebcken said on Monday, “The Atlas has built strong momentum for Volkswagen in the SUV segment, and we are excited to grow our SUV portfolio with this new, Chattanooga-assembled five-passenger SUV. We are not only committed to this market, we are committed to our US manufacturing home in Chattanooga, Tennessee.” Reuters (3/19, Shepardson) quotes Tennessee Gov. Bill Haslam (R) saying that the VW facility has grown “from a single vehicle producer, starting with the Passat, into what it is today – a thriving US manufacturing operation that can produce three models, and counting.” Reuters also writes that “the investment announcement is positive news for the US car industry.” The Wall Street Journal (3/19, Roberts, Subscription Publication) also reports.

Business and a Biscuit Legislative Series
A Fast Paced Preview of the Legislative Week Ahead

Week #10: Monday, March 26, 2018
10:00am – 10:30am CST
Location: TN Chamber Office, 414 Union Street, Nashville, TN 37219

**Join in person or dial-in by phone**
RSVP email required: info@tnchamber.org
Alvin York’s grandson: ‘Greatest battle’ was in Fentress County, not France

Alvin York’s 70-year-old grandson plans to travel this fall to France for the 100th anniversary of the World War I battle where his grandfather won the Congressional Medal of Honor by single-handedly killing 25 German soldiers and capturing another 132, reports The Tennessean . But Gerald York says Alvin York considered his greatest battle to be over founding a state-supported high school in Fentress County that’s still operating (though Gov. Bill Haslam made a short-lived attempt to end state funding five years ago.)

His family, though, remembers a much more ordinary man, not necessarily an icon of bravery and heroism.

His legacy, for those who knew him best, wasn’t forged on the field of battle. Instead it is near his hometown in the walls of the only state-funded and managed public high school — it, too, carries York’s name — in Fentress County, one of the most rural and poor counties in the state.

“He said the greatest battle he had was not in France, but was in Fentress County building a high school,” Gerald York said. “People did not want a high school. They thought, why did their kids need education. They farmed. They needed them to farm.”

That storyline is echoed among many who have lived in Fentress County, where the opioid epidemic rages and unemployment still ranks higher than most Tennessee counties.

Irish Day Celebration delivered smiles, beautiful weather and community spirit

Erin, Tenn. — ( The Leaf Chronicle )
Erin's 56th Irish Day Celebration once again put smiles on the faces of thousands of green-clad visitors to this small Tennessee town.

It was a Chamber of Commerce day, literally and figuratively, with organizers and tourists being greeted by perfectly blue skies and temperatures near 80 degrees.

"People have come in from Franklin and Nashville, all parts of Kentucky, and even as far away as Boston, Massachusetts. They just wanted to be in Erin today. We love doing this every year.”

Houston County Area Chamber of Commerce President Angie Neilson said it is a united effort from the community that makes it happen each year.

“You certainly won't see me doing any kind of government relations work or anything like that.” -- Retiring Sen. Bob Corker (R-TN), on his future plans. ( Chattanooga Times Free Press )
Tennessee Chamber of Commerce & Industry | www.tnchamber.org
(615) 256-5141 | info@tnchamber.org