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Tennessee Department of Revenue details franchise and excise tax exemption for armed forces facilities
Summary
The Tennessee Department of Revenue said facilities owned or operated for the benefit of U.S. armed forces may qualify for franchise and excise tax exemption under Tenn. Code Ann. § 67-4-2008; applicants must file form FAE-183 annually by the 15th day of the fourth month following the taxable year and may face a $200 penalty for late filing.
An agency official with the Tennessee Department of Revenue said in a webinar that facilities owned in whole or in part by a branch of the U.S. armed forces — or entities that derive more than 50% of their gross income from operating facilities on federal property for the benefit of service members — may qualify for a franchise and excise tax exemption under Tennessee Code Annotated § 67-4-2008.
The official said applicants must file for the exemption using form FAE-183 (the application for exemption or the annual exemption renewal form). "You must file for the exemption on form FAE-183, the application for exemption or annual exemption renewal form," the agency official said. The application must be filed annually and submitted by the 15th day of the fourth month following the entity's taxable year.
"Failure to timely file an application for exemption or renewal may result in the assessment of a $200 penalty," the official added. The presenter also said that entities that request a federal income tax extension are automatically granted an extension for franchise and excise tax; filers should check the box indicating a federal extension has been filed to ensure the extension is applied.
If an entity does not meet exemption requirements in a given year it is taxable on all activities for that year and must complete a franchise and excise return. The presenter said the franchise and excise tax return (FAE-170) must be filed electronically with payment of any taxes due by the 15th day of the fourth month following the close of the entity's taxable year.
Viewers were directed to additional guidance in the franchise and excise tax manual and to the department's website at tn.gov/revenue for forms and instructions. For help, the webinar listed the department's general tax line as (615) 253-0600 and a franchise and excise tax line as (615) 253-0700; phone support is available Monday through Friday, 8 a.m. to 4:30 p.m. Central Standard Time. The presenter also listed an email support contact as revenue.support@tn.gov and noted the department maintains Facebook, Twitter, YouTube, Instagram and LinkedIn accounts. Supplemental materials were available via the webinar video library.
