NAIFA-TN is using its advocacy muscle to convince state legislators to eradicate its professional privilege tax. The tax was used to balance budgets in 1992 and in 2002 and Tennessee is one of only six states with such a tax. Until two years ago, the tax applied to 22 different professions, including dentists, physicians, and real estate principal brokers. In 2019, Tennessee removed the discriminatory tax on 15 of the professions yet continues to require attorneys, securities agents, broker-dealers, investment advisers, lobbyists, osteopathic physicians, and physicians to pay the annual $400 tax.
“Tennessee has more than 100 licensed professions; seven remain singled out for this tax, which is discriminatory,” said a letter cosigned by NAIFA-TN. “Tennessee is a very good state in which to conduct business, but we believe it’s an opportune time to 1) send a clear, across-the-board message that it’s a right and not a 'privilege' to run a business in Tennessee; 2) eliminate a double tax on professionals who already are paying licensing fees…”
NAIFA-TN has been engaged on this issue for many years but remains optimistic on the issue in 2021, especially with the partnership it has formed with:
- Tennessee Small Business Association
- Tennessee Medical Association
- Tennessee Bar Association
- Americans for Prosperity Tennessee
- Americans for Tax Reform
- Tennessee Lobbyists Association
- Securities Industry and Financial Markets Association
- Tennessee Bankers Association
- Financial Services Institute
