The Town of Huntsville, Scott County and the State of Tennessee offer competitive tax structures for residents and businesses.
» Huntsville Property Tax: $0.50 per $100 assessed value
» Scott County Property Tax: $2.37 per $100 assessed value
» Sales Tax: 7% (state); 2.25% (local)
» State Personal Tax: 6% on interest and dividends
» State Corporate Tax: 6% on net earnings
» State Franchise Tax: 25 cents per $100 of capital properties
» State Unemployment Tax: 2.7% of first $7,000
Tennessee is one of nine U.S. states that do not have a state income tax. Tennessee’s constitution requires state and local budgets to be balanced.
Incentives
SALES & USE TAX
No sale tax on:
• Purchases, installation and repairs on qualified industrial machinery
• Purchases of material handling and racking equipment associated with the required capital investment of $10 million by a distribution or warehouse facility.
• Raw material for processing
• Reduced sales tax rates for manufacturer’s use of energy fuel and water. Tax-exempt is used directly in manufacturing process.
• Headquarters Tax Credit. Reduction of sales tax from 7 percent to 0.5 percent on building materials, machinery and equipment used in the construction of remodeling of a qualified headquarters facility.
• Refund on taxes paid on goods and services by motion picture production companies filming or producing in Tennessee. Requires expenditures of $500,000.
PROPERTY TAX
No property tax on:
• Work-In-Progress
• Finished-good inventories in hands of maunfacturer
• Inventories of merchandise for sale.
CORPORATE EXCISE
• Excise tax credit equal to 1% of the purchase price of qualified industrial machinery
• Excise tax credit equal to 1% of the purchase price of equipment associated with the required capital investment by a distribution or warehouse facility.
• Net operating loss carry forward of 15 years
• All capital losses can be claimed in the year incurred.
