May 8, 1992
TO: TAX MEMBERS NO. 31-92
STATE LIAISON COMMITTEE NO. 18-92
BROKER/DEALER ADVISORY COMMITTEE NO. 14-92
INVESTMENT ADVISER MEMBERS NO. 20-92
BROKER/DEALER ASSOCIATE MEMBERS NO. 6-92
INVESTMENT ADVISER ASSOCIATE MEMBERS NO. 15-92
RE: TENNESSEE ENACTS PRIVILEGE TAX ON CERTAIN STATE-LICENSED
PROFESSIONALS
__________________________________________________________
As part of its budget considerations this year Tennessee
has enacted legislation (attached) which imposes a $200 annual
tax on the privilege of engaging in certain enumerated
occupations or professions in the State. Among the occupations
which are taxed are broker-dealers, "securities agents" and
investment advisors. These taxes are in addition to any fees
charged by the State to obtain or maintain any necessary license
or registration. The privilege tax was enacted as a compromise
in place of the services tax on these professions or occupations.
The State's professional organizations, which had earlier opposed
the services tax, did not oppose the privileges tax.
Also attached is a copy of the notice which has been sent
out by the State to the affected individuals. Any person who
engages in one of the occupations subject to tax should receive
this notice. The tax is due for the first year by June 1, 1992,
and each June 1 thereafter. Any payments not received by June 1
will be considered late and will be subject to penalties and
interest charges. Certain persons on inactive status may qualify
for a waiver of the fee.
We will keep you informed of further developments.
David J. Mangefrida Jr.
Assistant Counsel - Tax
Attachments