Tennessee
Majority of $1.5B franchise tax refunds would flow out of Tennessee, new records show
As Tennessee lawmakers take up final negotiations on a $1.9 billion franchise tax change package this week, new records obtained by The Tennessean show the landmark legislation was initially prompted by $15 million in valid franchise tax refunds sought by 24 businesses, and that if approved, a majority of the money would be headed out of state.
Gov. Bill Lee’s largest spending item this year is a proposal to change the method by which the state charges franchise taxes to businesses, eliminating the property tax calculation — a move that’s expected to cost the state $400 million in revenue beginning this year.
Lee’s proposal also includes $1.5 billion in refunds for up to 100,000 businesses which paid taxes based on the property measure over the last three years.
While 81% of the estimated 100,000 businesses eligible for a refund are located primarily in Tennessee, 53% of the refund dollars would be headed out of state, according to a revenue department analysis included in the new records.
Administration officials have said the refunds are indispensable to avoid lawsuits and court-ordered penalties and have emphasized that refunds would go businesses of all sizes.
Of the 100,000 taxpayers who would be eligible for refunds, 29% are in real estate, 15% in manufacturing, 13% are in retail, 7% are in accommodations and food service, and 5% are in health care, the records show.
As a conference committee is expected to meet on the bill Tuesday morning at 10 a.m., House leadership is pushing for public disclosure of business names and refund amounts — something they say is a “make or break” to the deal — and only one year’s worth of refunds.
Lee said Monday he opposes those transparency measures, and the Senate version does not include them. It remains unclear how much Lee’s family business, the Lee Company, would financially benefit from the refund, something critics of the deal regularly cite.
Administration officials have repeatedly said the change was prompted by more than 80 companies that approached the state seeking refunds. The Lee administration has declined to release details about the companies, letters indicating potential liability, or how much money companies sought in refunds from the state.
More: Tennessee declines to name 80 companies that prompted the $1.6B franchise tax change
New records obtained by The Tennessean in a records request to Lee’s office show that while 86 companies did file initial refund claims with the state, as officials have said, only 24 of the 86 paid franchise taxes based on the property measure and would be eligible for a refund under the Lee administration’s remedy. Of the $90 million in refunds the 86 companies requested, $15 million would go to the 24 eligible companies.
“Most of the taxpayers that have already filed for a refund would not be eligible for a refund under the administration’s proposed remedy because they did not pay franchise tax on the property measure,” Lee spokesperson Elizabeth Johnson told The Tennessean in an email on Monday.
The first refund claims were filed in December 2022, and further claims were filed in 2023. Claimants are represented by the law firm Reed Smith LLC, according to the records, which include emails, a timeline and presentations and documents from both Lee’s office and the Department of Revenue.
Representatives from the Department of Revenue met with attorneys from Reed Smith prior to conducting the analysis, and continued those conversations while developing the reform proposal, according to a timeline of the legal challenge obtained by The Tennessean.
The Tennessee Department of Revenue has said that sharing information about the companies would violate state laws protecting taxpayer confidentiality. For example, email records show that in response to a Feb. 9 request from a Bloomberg Tax reporter for the total amount of refunds requested by companies, revenue spokesperson Kelly Cortesi responded that “state law prohibits us from disclosing this information.”
Cortesi also cited state taxpayer confidentiality laws when asked for details by The Tennessean.
But while the Lee administration declined to disclose to the media the amount of refunds sought by the 86 companies, officials circulated fact sheets with that information to lawmakers, according to records obtained by The Tennessean.
Ten days after telling Bloomberg Tax that sharing the refund amount requested by companies would violate taxpayer confidentiality, the Department of Revenue shared handouts on the franchise tax reform that contained that exact information with lawmakers, according to an email sent by Lee’s Chief Counsel Erin Merrick.
“Revenue will share these handouts broadly with members,” Merrick wrote in an email to his deputies on Feb. 22. An early committee vote was initially set for the next week.
Cortesi in a statement to The Tennessean for this story said the aggregate amount of refunds requested is not confidential.
“The Department of Revenue routinely prepares informational sheets for legislation for meetings with legislators, and we do not consider them to be private materials,” Cortesi told The Tennessean an email.
While the aggregate information for the 86 companies was shared with lawmakers, it was never publicly disclosed during committee hearings, via PowerPoint presentations to the public, or in other public comments. Officials only ever spoke generally about companies that would be eligible for a refund.
Instead, administration officials cited the more than 80 taxpayers that had already filed for franchise tax refunds while arguing the urgency of the reform. Officials never publicly said that while 86 companies had sought about $90 million in refunds, only 24 of the 86 that originally filed would be eligible for a refund, or that the refund amount to which they were entitled totaled $15 million.
“The Department of Revenue has not misrepresented any information,” Cortesi told The Tennessean. “The department has consistently stated that approximately 100,000 taxpayers would be eligible for the remedy under the proposed legislation. This is only a portion of all franchise taxpayers.”
More: Tennessee Gov. Bill Lee opposes franchise tax transparency measure backed by House GOP
Vivian Jones covers state government and politics for The Tennessean. Reach her at vjones@tennessean.com or on X at @Vivian_E_Jones.
Tennessee
A Tennessee congressman introduced a federal bill to crack down on fake emergency calls. Here’s what to know about swatting.
NASHVILLE, Tenn. (WSMV) – A U.S. congressman from Tennessee has introduced a bill to crack down on swatting.
Rep. David Kustoff (R, TN-8) introduced the “Preserving Safe Communities by Ending Swatting Act,” which would strengthen federal penalties for swatting.
The measure says, “This bill makes it a crime to intentionally convey false or misleading information in circumstances where the information may reasonably be expected to cause an emergency response and the information indicates the occurrence of criminal conduct or a threat to health or safety (commonly referred to as swatting).”
This comes after more than half a dozen schools in Tennessee were all placed on lockdown this week after hoax school threats.
Here’s which TN schools were impacted by ‘hoax’ threats, and what to know about the swatting investigations
What is swatting?
According to the FBI, swatting is when a person calls 911 and fakes an emergency that draws a response from law enforcement — usually a SWAT team.
The calls can put first responders and victims in dangerous situations, the FBI said, as the callers often report tales of hostages about to be executed or bombs about to go off.
“The community is placed in danger as responders rush to the scene, taking them away from real emergencies,” the FBI said. “And the officers are placed in danger as unsuspecting residents may try to defend themselves.”
While the FBI does not have a publicly recorded number of swatting calls that have been made year over year in the U.S., the National Association of Attorneys General says swatting threats have escalated across the U.S. Because of this, several states have taken targeted action to criminalize these calls, including Kentucky, which in 2022 approved a bill that would increase penalties for falsely reporting emergencies and allow courts to order restitution to affected agencies or individuals.
According to the FBI’s 2023 Year in Review report, it launched the National Common Operating Picture database to track swatting events. The agency reported more than 300 incidents between May and September of 2023.
The K-12 School Shooting Database recorded swatting incidents at U.S. schools from 2023 to 2024. The highest number of reported incidents occurred in March 2023, with 210. The second-most was 148 in February 2023.
Recent swatting incidents in Tennessee
On Tuesday, a flurry of swatting incidents caused several schools in Middle Tennessee to be put on lockdown and lockout, drawing responses from several law enforcement agencies and disrupting students’ education.
In April, the Williamson County Sheriff’s Office received a report of a threat made against a student at Independence High School.
The school was placed on a brief lockdown as the sheriff’s office investigated the threat.
The sheriff’s office later determined that the call was actually a swatting incident and was likely made from out-of-state.
A spokesperson for Williamson County Schools said some similar false threat calls were made to other schools in the area as well.
The investigation into that incident is ongoing.
Earlier this year, an East Tennessee teen was arrested for allegedly making four swatting calls to the McMinnville Police Department. The caller reported that a person had been shot and another was being held hostage.
The 17-year-old Maryville boy admitted to being angry at another teen staying at a McMinnville home and paying someone to call false emergencies and being present when the calls were made.
The Associated Press reported in 2025 about a wave of swatting calls at multiple college campuses in August.
One of the first incidents in this wave occurred in Tennessee at the University of Tennessee at Chattanooga when authorities received false calls reporting an active shooter with an AR-15-style rifle and four people shot.
The AP reported that dispatchers reported hearing multiple gunshots on the calls.
Ways to protect yourself from swatters
The FBI shared measures you can take to protect yourself from swatters, including:
- Review your online presence for sensitive personal information that could enable malicious actors to conduct a swatting attack.
- Exercise care when posting content (including photos and videos) or sharing it with individuals online. Although seemingly innocuous, images and videos can be exploited or manipulated by malicious actors for criminal activity.
- Consider online resources and services that may aid in reducing or removing sensitive publicly available information.
- Use strong, unique passwords and multi-factor authentication on all devices and accounts, including smart home devices.
- Discuss swatting with your family members or colleagues and have a plan in place in the event of law enforcement contact at your residence, business, or other location.
Copyright 2026 WSMV. All rights reserved.
Tennessee
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Tennessee
Tennessee releases new roadmap for electric vehicles
NASHVILLE, Tenn. (WTVF) — Tennessee environmental officials and electric transportation partners have released an updated roadmap for the state’s electric vehicle future.
The Tennessee Department of Environment and Conservation’s Office of Energy Programs and Drive Electric Tennessee released the 2026 Roadmap for Electric Vehicles in Tennessee, which builds on the state’s original EV strategy from 2019.
The updated plan lays out priorities for the next decade, including a goal to support the deployment of 750,000 light-duty electric vehicles in Tennessee by 2035.
The roadmap also addresses medium- and heavy-duty vehicle electrification, charging infrastructure, battery recycling, second-life battery use, bi-directional charging and smart charge management technologies.
State officials said Tennessee’s EV landscape has changed in recent years because of growing consumer interest, manufacturing investment, expanded charging infrastructure and federal, state, utility and local programs.
Since the original roadmap was released, Drive Electric Tennessee and its partners have completed more than 40 EV-related projects. Those efforts have included assessing charging needs, connecting fleet operators with EV options, hosting demonstrations and developing best practices for local policy.
TDEC said Tennessee’s automotive manufacturing base and EV supply chain could help the state benefit economically from transportation electrification through job creation and private investment.
Officials also said EV adoption could help reduce transportation costs for households and fleets, improve air quality and support energy independence by using locally produced electricity as a transportation fuel.
According to the U.S. Energy Information Administration, the transportation sector made up 46.1% of Tennessee’s total energy consumption in 2023, making it the state’s largest energy-consuming end-use sector.
For additional information on transportation electrification in Tennessee, visit the TDEC website.
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