2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 4 - PRIVILEGE AND EXCISE TAXES (§§ 67-4-101 — 67-4-3206) › Part 21 - FRANCHISE TAX LAW OF 1999 (§§ 67-4-2101 — 67-4-2123) › Section 67-4-2122

(a)
If a taxpayer paid the tax levied by this part as a result of the minimum tax base in § 67-4-2108, as that section existed prior to the effective date of this act, then the commissioner shall issue a refund equal to the amount of tax actually paid minus the amount of tax otherwise due pursuant to this part without regard to § 67-4-2108, as that section existed prior to such date; provided, however, that the refund is subject to the following provisions:
(1)
The tax subject to refund must have been reported to the department on a return filed on or after January 1, 2021, covering a tax period that ended on or after March 31, 2020, and the refund claim must be filed pursuant to this section between May 15, 2024, and November 30, 2024;
(2)
The claim for refund, including information necessary to determine the proper amount due, must be filed on a form prescribed by the commissioner exclusively for the purpose of seeking a refund pursuant to this section and must not include a claim for refund on any other basis. The form must include a statement that upon acceptance of a refund issued pursuant to this section, the taxpayer knowingly waives any claim by the taxpayer or the right to file suit alleging that the franchise tax in this part, or any provision of this part, including § 67-4-2108 as that section existed prior to the effective date of this act, is unconstitutional by failing the internal consistency test. A claim on any other basis must be filed separately under § 67-1-1802. The commissioner is also authorized to refund, in accordance with this section, a claim timely filed under § 67-1-1802 and filed prior to January 1, 2024, that alleges that the franchise tax in this part, or any provision of this part, is unconstitutional by failing the internal consistency test. The commissioner is not authorized to make a refund under this section unless a claim is filed;
(3)
As used in this section, "tax actually paid" includes any credits applied on the return. Credits must be reinstated but not paid as a refund;
(4)
This section does not prevent the commissioner from auditing the refund claim, appropriately adjusting or denying the claim, or auditing the amount of tax otherwise due under this part within the applicable statute of limitations;
(5)
A refund due under this section must first be used to offset any outstanding tax liabilities and is subject to the report of debts requirements in § 67-1-1802(a)(1)(B);
(6)
A denial of a refund claimed under this section is subject to the remedies provided in §§ 67-1-1802(b) and 67-1-1802(c);
(7)
Interest at the rate established by
26 U.S.C. § 6621(a)(1)
for a large corporate overpayment in the amount of the federal short-term rate plus five-tenths (0.5) of a percentage point must be added to the amount refunded under this section beginning ninety (90) days from the date the commissioner receives the refund claim and proper proof to verify that the refund or credit is due and payable;
(8)
Notwithstanding § 67-1-1702 or another law to the contrary, for purposes of administering the franchise tax refund, the department shall publish on the department's website, only for the period from May 31, 2025, through June 30, 2025:
(A)
The name of each taxpayer issued a refund and the applicable range corresponding to the total amount refunded to the taxpayer. The applicable ranges are: seven hundred fifty dollars ($750) or less; more than seven hundred fifty dollars ($750) but less than or equal to ten thousand dollars ($10,000); and more than ten thousand dollars ($10,000); or
(B)
If a taxpayer has filed a refund claim but has not been issued a refund by May 31, 2025, the name of the taxpayer as required by this subdivision (a)(8) with the range omitted and designated as "pending"; and
(9)
Attorneys' fees must not be added to the amount of refund due.
(b)
All refunds paid pursuant to this section must be paid from an appropriately designated fund established by the commissioner of finance and administration. Except as otherwise provided in this subsection (b), any unexpended balance at the end of a fiscal year shall not revert to the general fund but must be carried forward to be expended in the subsequent fiscal year. On or before June 30, 2025, the commissioner of finance and administration and the commissioner of revenue must jointly certify to the chairs of the finance, ways and means committees of the senate and the house of representatives the amount claimed pursuant to subsection (a). On July 1, 2025, any funds in excess of the certified amount shall revert to the general fund. The fund specified in this subsection (b) expires upon final payment of all refunds due pursuant to this section, and any remaining balance shall revert to the general fund. It is the legislative intent that the beginning balance in the fund must be from funds appropriated by the general assembly in the general appropriations act for the purposes of this section.
(c)
The office of the attorney general and reporter must review and approve the department's process for reviewing refund claims under this section before the department is authorized to review and approve such claims.
(d)
On or before December 31, 2024, the department of revenue shall report in writing to the chairs of the finance, ways and means committees of the senate and the house of representatives, and to the directors of the office of Iegislative budget analysis, the total number of refund claims filed and the total amount paid pursuant to this section.
Added by 2024 Tenn. Acts, ch. 950,s 3, eff. 5/10/2024.