Tax Credits for Shippers — Definitions — Study — Report
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As used in this section:
“Accessorial services”:
Means any service that is incidental to transportation services; and
Includes storage, packing, unpacking, hoisting or lowering, waiting time, overtime loading and unloading, and reweighing;
“Best interests of the state” means a determination by the commissioner, with approval by the commissioner of economic and community development, that the qualified transportation expenditures are a result of the credit described in this section;
“Freight motor vehicle” means a motor vehicle that is designed and used primarily to transport goods for hire or for commercial purposes;
“Goods” means personal property that is treated as movable for the purposes of a contract for transportation services;
“Line haul services” means the movement of goods over the public highways from the point of origination to the final destination;
“Motor carrier” means a person who operates or causes to be operated a freight motor vehicle on a public highway for the purpose of performing transportation services;
“Person” means every individual, firm, association, joint-stock company, syndicate, partnership, corporation, or other business entity;
“Qualified transportation expenditures” means the total charges incurred by a shipper for line haul services, transportation services, and accessorial services performed by a motor carrier for shipments picked up at points of origination within this state or delivered to final destinations within this state;
“Shipper” means any person that enters into a contract for transportation services with a motor carrier;
“Transportation services” means the pickup or delivery, or both, of goods at the point of origination or final destination; and
“Turn-around policy” means the uniform and internal policy established by a shipper that meets the requirements of subdivision (c)(2).
The Tennessee advisory commission on intergovernmental relations (TACIR) is directed to perform a study of the potential, overall effects of creating a franchise and excise tax credit for shippers with pickups or deliveries originating in, or destined to, any county having a population over nine hundred thousand (900,000), according to the 2010 federal census or any subsequent federal census.
In conducting the study under subsection (b), TACIR shall consider a franchise and excise tax credit that meets the following criteria:
The credit would be allowed to any shipper that establishes and implements a turn-around policy pursuant to subdivision (c)(2) against the sum total of the franchise and excise taxes owed by the shipper, equal to two percent (2%) of qualified transportation expenditures;
To qualify for the credit described in this section, the shipper would establish and implement a uniform and internal turn-around policy for assuring that pickups and deliveries are performed during the period of time agreed upon by a motor carrier and a shipper and for preventing delays in the timely transportation of goods over the public highways. The policy must include the following minimum requirements:
That pickups and deliveries shall be accomplished on the date scheduled for pickup or delivery, that pickups must be completed within the period of time agreed to by the shipper and the motor carrier, which period shall not exceed two (2) hours, and that deliveries must be completed within the period of time agreed to by the shipper and the motor carrier, which period shall not exceed two (2) hours; and
That for each shipment of goods for which transportation services of the motor carrier is requested by a shipper, the shipper shall provide the motor carrier with contact information for:
Any person who may authorize pickup or delivery of any goods to be transported if the shipper designates such a person;
The shipper and any person receiving the pickup or delivery, if different from the shipper; and
Any person to whom notification of delays or that goods are available for pickup or delivery, shall be given;
The credit would only be available upon a determination by the commissioner of revenue, with approval by the commissioner of economic and community development, that the qualified transportation expenditures and the credit are in the best interests of the state;
The credit would apply only in the tax year in which the shipper implements a turn-around policy meeting the criteria in subdivision (c)(2), incurs qualified transportation expenditures, and otherwise meets the requirements of this section; and
The total credit claimed for any taxable year, including the amount of any carryforward credit claimed, would not exceed fifty percent (50%) of the combined franchise and excise tax liability shown by the return before any credit is taken. Any unused credit could be carried forward in any tax period until the credit is taken; provided, however, that the credit could not be carried forward for more than fifteen (15) years.
All appropriate state agencies and departments shall provide assistance to TACIR upon the request of its executive director.
TACIR shall submit a report disclosing the findings of the study and recommendations, including any proposed legislation or interim reports, to the general assembly no later than February 1, 2020.