Substituted for: House Bill No. 1673

AN ACT To amend Tennessee Code Annotated, Title 67, Chapter 4, relative to personal property tax credits.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

SECTION 1. Tennessee Code Annotated, Section 67-4-713(a), is amended by adding the following language as a new, appropriately designated subdivision:

( ) The amount of personal property taxes that would be owed pursuant to Chapter 5, Part 5 of this title, but for the fact that pursuant to a lawful agreement between the person and a local governmental unit or instrumentality the person's personal property has been transferred to a governmental unit or instrumentality; provided, however, that the person shall be eligible for such credit only to the extent of the tax generated from its receipts for services rendered by such person to an affiliated person, and:

(A) Either person directly owns or controls eighty percent (80%) or more of the other; or

(B) Eighty percent (80%) or more of both persons is directly or indirectly owned or controlled by a common parent.

SECTION 2. This act shall take effect upon becoming a law, the public welfare requiring it.