Professional Privilege Tax Updates
General Assembly Authorizes Study of Professional Privilege Tax
By John Williams
The Tennessee legislature has put the infamous Professional Privilege Tax (PPT) under the microscope to determine whether it is needed and whether it should be changed or phased out.
Chapter 1024 of the Public Acts of 2016 requires the Tennessee Advisory Commission on Intergovernmental Relations (TACIR) to study and make recommendations to the legislature about the PPT by January 1, 2017. The bill authorizing the study was signed into law by Governor Haslam on April 28, 2016.
Public Chapter 1024 requires that the study examine:
1) The history of the PPT;
2) The intent of the PPT;
3) Other states’ laws imposing a PPT or similar tax; and
4) Alternatives for eliminating or phasing out the PPT.
Public Chapter 1024 states that the study must also examine:
1) The application or non-application of the PPT to various occupations, businesses, and professions; and
2) The application of this tax to residents and non-residents of Tennessee.
The law also requires that the study specifically examine the applicability of the PPT to audiologists and speech pathologists.
You may ask: Why TACIR? The answer is simple. TACIR has staff which specializes in doing studies of tax issues. Public Chapter 1024 requires that the Department of Revenue and other state agencies provide assistance to TACIR if requested.
The legislators who sponsored this legislation are Sen. Janice Bowling of Tullahoma and Rep. Micah Van Huss of Gray. TAASLP owes a special debt of gratitude to these two legislators, and TAASLP members may want to send them a note of thanks.