Tenn. effort to plug tax loopholes could net up to $20M - WMC Action News 5 - Memphis, Tennessee

Tenn. effort to plug tax loopholes could net up to $20M

NASHVILLE, Tenn. (AP) - The state Revenue Department's latest effort to close tax loopholes could net the state up to $20 million.

Revenue Commissioner Reagan Farr says the annual measure known as the "Technical Corrections Bill," will this year include efforts to keep businesses from avoiding taxes when they sell commercial properties at a profit.

It will also seek to stop some banks from being able to avoid taxable interest income from mortgages by shifting it to out-of-state branches and then returning it as nontaxable dividend income.

Farr declined to project how much money the state will gain if the measure passes, but notes that state Finance Commissioner Dave Goetz has pegged the range at between $15 million and $20 million.

Information from: The Knoxville News Sentinel, http://www.knoxnews.com

(Copyright 2008 by The Associated Press.  All Rights Reserved.)

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