Tennessee’s business taxes are starting to pick up again, after a period of steady decline. That’s according to an economist who’s analyzed the state’s latest economic figures.
Economist Bill Fox said on a conference call on Tuesday with Secretary of State Tre Hargett that business taxes, or franchise and excise taxes, are looking brighter. That’s after they took a deep slide after one large company left the state.
What the ‘f and e’ taxes are showing is that we’re now flattening out. There were clearly some things that happened, some one time events, a very small number of businesses, really focused on one that moved from Tennessee. It was really a one-time unusual event.”
That one business helped contribute to a $222 million deficit in business taxes.
It was a health-care services firm called McKesson. It was lured to Mississippi by tax policies that would more accommodating to pharmaceutical companies.
Still, in terms of new business filings, Hargett says the latest numbers show that Tennessee is growing at a steady pace.