Tennessee DOR Publishes Updated Franchise, Excise Tax Manual

The Tennessee Department of Revenue June 1 published an updated franchise and excise tax manual. Tennessee imposes franchise and excise taxes on entities that operate in the state and offer their owners limited liability protection. In-state and out-of-state entities can be subject to the tax. The manual includes updated information to: 1) clarify that an entity will generally be classified consistently with how it’s organized under state law to determine its qualification for franchise and excise tax exemptions; 2) clarify the determination of the venture capital fund exemption; 3) provide guidance regarding consolidated net worth computations; 4) clarify that the ...