Tennessee Pays Businesses $1.43 Billion in Franchise Tax Rebates

Tennessee has paid out more than $1.43 billion to thousands of businesses under the state’s one-time franchise tax refund program, a senior Department of Revenue official said Wednesday.

The final tally could go higher because a handful of claims are still being settled. The refunds were issued after adjustments to the state’s franchise tax, which lawmakers believed might not withstand legal challenges.

Deputy revenue commissioner Christine Lapps said the state legislature handed the department responsibility for administering more than 60,000 refund claims—a daunting task for a state that typically processes only 10,000 claims each year across its business tax programs. ...