67-4-713 - Credits.
67-4-713. Credits.
(a) The following credits may be taken by persons filing and paying the tax imposed by this part:
(1) For persons filing returns and paying taxes due under this part, the pro rata portion of any privilege tax paid under any provisions of title 56, chapter 4, part 4, title 57, chapter 5, or parts 4 and 5 of this chapter, extending past June 1, 1971, and repealed as of that date;
(2) [Deleted by 2009 amendment.]
(3) Except as provided in subdivision (a)(4), personal property taxes properly paid pursuant to chapter 5, part 5 or part 13 of this title;
(A) Personal property taxes are allowable as a credit only to the extent that the property is located and taxed by the same city or county as the taxpayer's principal domicile for business tax purposes;
(B) Personal property taxes are allowable as a credit only for taxes paid either during the tax period covered by the return or prior to the due date of the return;
(C) Personal property taxes assessed pursuant to audit and subsequently paid may be taken as a credit either on the business tax return filed for the year in which the additional personal property tax was paid or on the return covering the immediately previous year. If the credit is taken in the previous year, an amended business tax return must be filed for that year;
(4) In cases where a lease or rental agreement provides specifically for payment of personal property taxes by the lessee or renter to the lessor or owner, personal property taxes paid by the lessee or renter to the lessor or owner covering any period of time extending beyond June 1, 1971, arising from assessments referred to in subdivision (a)(3) and made against the lessor or owner. The credit authorized in this subdivision (a)(4) to the lessee or renter may not be taken by the lessor or owner;
(5) Personal property taxes paid pursuant to a special school district tax levied by public or private act. The credit established by this subdivision (a)(5) shall only apply in any county having a population of not less than twenty-eight thousand two hundred fifty (28,250) nor more than twenty-eight thousand three hundred (28,300), or not less than forty-nine thousand four hundred (49,400) nor more than forty-nine thousand five hundred (49,500), according to the 1980 federal census or any subsequent federal census; and
(6) The amount of personal property taxes that would be due and owing pursuant to chapter 5, part 5 of this title, but for the fact that pursuant to a lawful agreement between the person and a local governmental unit or instrumentality the person's personal property has been transferred to a governmental unit or instrumentality; provided, that:
(A) The person shall be eligible for such credit only to the extent of the tax generated from its receipts for services rendered by such person to an affiliated person;
(B) Either person directly owns or controls eighty percent (80%) or more of the other, or eighty percent (80%) or more of both persons is directly or indirectly owned or controlled by a common parent;
(C) The provisions of this subdivision (a)(6) are not affirmatively rejected by a two-thirds (2/3) vote of the legislative body of the county or municipality, whichever is appropriate, exercising jurisdiction over the governmental unit or instrumentality; and
(D) The provisions of subdivision (a)(6)(C) shall be retroactive to tax years beginning on or after January 1, 1999, with respect to agreements in effect on that date.
(7) [Deleted by 2009 amendment.]
(b) In no case shall the total credits provided in this section be used to offset more than fifty percent (50%) of the taxpayer's liability as calculated in § 67-4-709.
(c)-(f) [Deleted by 2009 amendment.]
[Acts 1971, ch. 387, § 14; 1972, ch. 850, § 13; 1973, ch. 208, § 4; 1973, ch. 242, §§ 1, 2; 1973, ch. 260, § 1; 1975, ch. 257, § 1; 1983, ch. 136, § 1; T.C.A., § 67-5814; Acts 1984, ch. 832, § 31; 1985, ch. 392, §§ 1, 2; 1990, ch. 898, § 4; 1990, ch. 1093, § 1; 1997, ch. 383, § 1; 1999, ch. 454, § 1; 2001, ch. 273, §§ 1, 2; 2002, ch. 856, § 9c; 2009, ch. 530, §§ 78-81.]