Taxes Overview

  • McMinn County and Tennessee maintains a favorable low cost business climate.
  • McMinn County has the 3rd Lowest Property Tax Rate in State of Tennessee.
  • Debt Free County  with strong capital reserves while continuing to fund capital projects.
  • McMinn County has Lowest Debt Per Capita in State of Tennessee.
  • The State of Tennessee has the Lowest Debt Per Capita in the nation.
  • Tennessee's State and Local Tax Burden Below National Average (Tax Foundation).

Local Taxes

McMinn County and Tennessee maintains a favorable low cost business climate. As well as having the 3rd lowest Property Tax Rate in Tennesse, McMinn County has the Lowest Debt Per Capita in Tennessee.

Property Tax

McMinn County has the 3rd lowest property tax rate in the State of Tennessee out of 95 counties while remaining the only debt free county in the State of Tennessee.

Property tax is levied on both real and personal property at the following rates:

McMinn County

$1.5469/$100 of assessed value

City of Athens

$1.2676/$100 of assessed value

City of Etowah

$1.77/$100 of assessed value

 Assessment ratios for real and personal industrial and commercial property are:

  • Industrial  and commercial real property = 40% of appraised value
  • Industrial and commercial tangible personal property = 30% of appraised value
  • Utility real and personal property =  55% of appraised value
  • Residential and agricultural property = 25%

Personal property depreciates at favorable rate of up to 12% per year, depending on the type of tangible personal property.

No property tax on goods-in-process, finished goods inventories, and goods-in-transit (Freeport).

 

Sales Tax

McMinn County has a sales tax rate of 2%.

 


 State Taxes

One of the major benefits of doing business in McMinn County is the low tax rates. You will see below that McMinn County offers incredibly favorable low tax rates on both the Franchise Tax and the Excise Tax.

Business: Franchise Taxes in McMinn County

  • Tax on the greater of net worth or book value of property owned or used in Tennessee.

  • Tax rate is a low 25¢ per $100.

  • Finished goods inventory in excess of $30 million may be excluded.

  • Pollution Control Equipment is exempt from franchise tax base.

  • Property under construction and not being utilized is not included.

  • Property rented from the industrial development corporation may be valued by capitalizing it on the books.

  • Tennessee exempts two-thirds (2/3) of the capital investment of companies qualifying for the Job Tax Super Credit from the property measure of the franchise tax base during those tax years in which the annual Super Credit is allowed.

Business:  Excise Taxes in McMinn County

  • Tax is based on the net earnings of the company derived from doing business in Tennessee. Companies doing business in Tennessee and other states use a 3-factor apportionment. Formula of property, payroll and sales with sales double-weighted.
  • Tax rate is a low 6.5%.
  • No throwback provision - sales outside of Tennessee are not taxed.
  • All capital losses are claimed in the year incurred.
  • Net operating losses can be carried forward for 15 years.
  • Net operating losses for projects of more than $100 million may be extended beyond 15 years.

Sales & Use Tax

The sales and use tax in Tennessee is 7% plus the applicable local rate (2%) on any person or company who manufactures, distributes or sells tangible personal property within the state. 

No sales tax is levied on:

  • Purchases, installation and repairs of qualified industrial machinery.
  • Raw materials for processing.
  • Certified pollution control equipment for manufacturers.
  • Machinery and equipment used for the production of electricity using clean energy technology including geothermal, hydrogen, solar and wind sources.
  • Material handling and racking systems for qualified warehouse and distribution facilities purchased during the 3 year investment period.
  • Computer equipment, peripheral devices and software purchased for a qualified data center with an investment of $250 million during the investment period.
  • Reduced sales tax rates for manufacturers' use of energy fuel and water (1.5% vs. 7%).
  • Qualified industrial supplies.
  • Items purchased for resale.
  • Containers, packaging and wrapping materials.
  • Additional exemptions or credits may be available.

State Property Tax

Attractive depreciation schedules with rates up to 12 percent annually.

No property tax on:

  • Goods-in-progress.
  • Finished goods inventories in hands of manufacturers.
  • Inventories of merchandise for sale.
  • Goods-in-transit (free port).

Personal Income Tax

No statewide personal income tax.

McMinn County Economic Development Agency - make it in Mcminn