Leaders of the two revenue committees say to expect the governor to file something that's sort of like a technical corrections bill to close loopholes, what with revenue projections falling short.
But, Nashville attorney Brett Carter thinks he's got it all figured out:
A Nashville tax attorney, writing in the national publication State Tax Notes, contends the problem isn’t really that complicated. Brett Carter cites the relocation in 2012 of McKesson Corp.’s pharmaceutical distribution center from Memphis to Olive Branch, Miss., just across the state line. Using figures from national sources and from from pending lawsuits for tax refunds, Carter calculates that move alone cost the state up to $150 million per year in lost revenue, not just from McKesson but from pharmaceutical companies whose products were being stored in the company’s warehouses, triggering state franchise tax payments for those companies as well when treated as part of property in Tennessee. Haslam and other state officials won’t address the situation because taxpayer records are confidential.