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McMinn County Boasts Low Business 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.

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.

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.