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Corporate Excise Tax

Reference Number: MTAS-1883
Reviewed Date: 12/02/2022

Revenue Class: Intergovernmental Revenue

Fund: General

Account No.: 33593

Description: The state corporate excise tax collected from banks is shared with municipalities and counties.

Local tax rates determine the payment allocation between the county and the city, so a city must levy a property tax to receive any funds. Another formula is prescribed for allocating such revenue if a bank has branches in more than one city and/or in more than one county. T.C.A. § 67-4-2017 (a)(1)(B).

Authorization: T.C.A. § 67-4-2017

Requirements or Restrictions: As noted in T.C.A.

Current Rate: The tax is 3 percent of net earnings (excluding interest from state bonds), less 7 percent of ad valorem taxes, divided between counties and municipalities based on property tax rates.

Frequency of Payment: Annually in the third quarter.

Late Pay Penalty: N/A

Exemptions: None.

Collection: State forwards revenue to municipalities in third quarter of each year.

Use Restrictions: None.