Taxes, Privilege - As introduced, specifies that the privilege tax exemption for subsidiaries of agricultural cooperatives applies without regard to whether the subsidiary was formed as a corporation, limited liability company, limited liability partnership, or other legal entity, association, or body vested with the power or function of a legal entity. - Amends TCA Title 43, Chapter 16, Part 1 and Section 67-4-102.

HB 423 would have exempted subsidiaries of Tennessee agricultural cooperatives from business privilege taxes, regardless of their legal structure (e.g., corporation, LLC, or partnership). It applied to any subsidiary controlled by an agricultural cooperative where profits benefit the parent cooperative, ensuring these entities aren’t taxed as profit-making businesses. The bill aimed to simplify tax treatment for agricultural cooperatives by removing the requirement that subsidiaries must be incorporated as corporations to qualify for the exemption. However, the bill was withdrawn on February 3, 2025, and did not become law.