NASHVILLE, Tenn. (WKRN) — Tax refunds could soon come to Tennessee, but the people won't be getting a slice of the pie.
During the last day of the legislative session, lawmakers passed a bill that would issue businesses three years' worth of franchise tax refunds in response to alleged legal issues. The measure would cost the state nearly $1.6 billion initially, and $400 million in tax cuts every year after.
"We are taking the money that these companies have paid into our tax system which we believe to be an overpayment based on our review of law, and are returning that money to them as we should," Sen. Bo Watson (R-Hixson) said.
In addition, the bill would require the businesses' names and the dollar range amount they receive in refunds be made public for 30 days in a push for transparency.
The bill's passage through the House and Senate didn't come without some debate.
"The hangup, and apparently, the compromise we've made is around the so-called transparency provisions, but with all due respect Mr. Speaker, I believe these transparency provisions are a joke," Sen. Jeff Yarbro (D-Nashville) said.
Democrats argued the bill doesn't provide enough transparency, especially because the top refund range is listed as "$10,000 and up," so the public wouldn't be able to determine whether the business received $10,000 or $10 million.
Watson fired back, reminding those on the other side of the aisle Tennessee has never released any taxpayer information before.
"What you are asking for is information that is not disclosed. We don't disclose that. We never have disclosed that. This is unprecedented that we're even naming who gets the tax refund," Watson said.
Republicans argued the refund would help the businesses providing thousands of jobs to Tennesseans, in turn boosting the economy.
"It will enhance Tennessee's competitiveness in economic development and recruitment of other industries to Tennessee," Sen. Ken Yager (R-Kingston) said. "It's the right thing to do to Tennessee taxpayers, and it's the right thing to do for Tennessee."
The back-and-forth debate continued with some Democrats claiming the taxes were collected legally and shouldn't be refunded at all.
"It's absolutely ridiculous to think that we should voluntarily be giving a retroactive rebate to people and taking taxpayer money from individual taxpayers, and I believe individual taxpayers are the taxpayers that we need to protect," Sen. Heidi Campbell (D-Nashville) said.
The bill is now headed to Gov. Bill Lee's desk, who is believed to support the legislation.