01 Feb Legislation on Professional Privilege Tax
The professional privilege tax of $400 that veterinarians and 21 other professions pay is getting a lot of attention at the beginning of the 2017 legislative session. The TVMA has been at the forefront of discussions for eliminating the tax since last year when a bill was amended to create a study of the tax. The study by the TN Advisory Commission for Intergovernmental Relations (TACIR) found that only six states have a professional privilege tax and that Tennessee’s tax collects more than any of the other states.
There are two main approaches to eliminating the tax. One is to eliminate the tax altogether and the other would phase the tax out incrementally over the next 4-5 years. A few bills have been filed with both approaches, which is a good indication of the interest in its elimination. The state has a large revenue surplus this year which makes it a good time to discuss lowering or eliminating taxes.
The TVMA will continue to work on this issue on behalf of its membership.