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.
NASHVILLE — The Tennessee Wildlife Resources Agency’s (TWRA) popular Tennessee Angler Recognition Program (TARP) has reached the 10,000 entry milestone, from anglers who have recorded trophy-sized catches in Volunteer State waters.
The historic catch was a sauger, measuring 21 ½ inches caught by Beverly Miller of Pulaski on the Cumberland River in Smith County. She is now two fish shy of reaching Master Angler 4 status. The fish, which was caught on an artificial lure, was released back into the river. The TWRA officially certified the catch on April 22.
“My husband and I enjoy the TARP program because it has encouraged us to travel the state to fish for species we wouldn’t have normally fished for and visit places we wouldn’t usually visit,” said Mrs. Miller.
TARP launched in 2003 to recognize anglers for outstanding sportfishing accomplishments, encourage the catch-and-release of trophy-size fish, promote the continued growth of fishing, and provide the TWRA with valuable documentation and information on large fish caught throughout the state. The program now has 27 qualifying fish species.
The TWRA typically receives approximately 500 submissions for the TARP program yearly. There have already been 420 submissions for 2026, on track for a new record in a calendar year.
“We are excited to reach this major milestone,” said Travis Scott, TWRA Assistant Chief of Fisheries. “Fisheries is looking to expand the TARP program by adding more species and Master Angler levels to further highlight Tennessee’s trophy fish potential. We hope these additions will inspire anglers to report their trophy catches.”
Anglers of any age who catch large fish that meet or exceed qualifying lengths may apply. The TWRA Fisheries Division sends these accomplished anglers TARP certificates, featuring reproductions of fish artwork by renowned wildlife artist Joseph R. Tomelleri.
TARP features five levels of angler recognition. Anglers submitting one of any of the 27 qualifying fish species that meet or exceed the minimum “trophy” length requirements receive a Trophy Fish Certificate, depicting the species:
- Master Angler I: Anglers submitting five (5) trophy-size fish species, in any combination, receive a Master Angler Level I certificate and patch.
- Master Angler level II: Anglers submitting five (5) different trophy-size fish receive a Master Angler level II certificate and patch.
- Master Angler III: Anglers submitting ten (10) different trophy-size fish receive a Master Angler III level certificate and patch. In addition, anglers will receive a gift card courtesy of Bass Pro Shops located in Kodak, Tenn.
- Master Angler IV: Anglers submitting fifteen (15) different trophy-size fish receive a Master Angler IV certificate, patch, and a trophy.
- Master Angler V: Anglers submitting twenty (20) different trophy-size fish receive a Master Angler V certificate, patch, and engraved plaque.
The TWRA Fisheries Division developed a chart to identify qualifying fish species and their corresponding minimum length limits. Anglers 13 years of age and older must be licensed at the time of the catch. The fish must be caught legally (in accordance with Tennessee Sportfishing Regulations) within Tennessee waters by rod and reel or cane pole. The application must have documentation of the length provided by either a witness or a photograph. Applications must be submitted within 90 days of the catch.
Since its inception, TWRA has received positive feedback from anglers on the program’s design, which allows them to work at their own pace and is suitable for all ages. The program’s diverse range of fish species provides anglers with the opportunity to travel beyond their regular fishing spot and progress to higher Master Angler levels. Trophy catches have been reported from nearly 100 different bodies of water, ranging from Bristol to Memphis, including small farm ponds, small lakes, mountain streams, and large reservoirs. For more information on locations to fish, visit the TWRA website’s Fishing section.
TARP provides information on locations that produce more trophies of various species, as well as the best time of year to catch a trophy of a specific species. The TWRA employs other methods to collect scientific data and monitor fish populations. In addition, TARP gives the opportunity for new anglers to learn fish identification and the ideal lengths for what is considered a trophy fish. It also serves as a tool in TWRA’s R3 program (Recruit, Retain, Reactivate). For further information about TARP and the State Record Fish Program, consult the 2025-26 Tennessee Fishing, Hunting, and Trapping Guide or the TWRA website.
The Tennessee Wildlife Resources Agency is responsible for protecting, managing, and conserving fish and wildlife species for the benefit of Tennesseans and visitors. The Agency also maintains public safety through law enforcement and safety education on waterways.
The History of Earth Day
A comprehensive look at the evolution of Earth Day from its 1970 origins to a global environmental movement.
Earth Day, the annual event which promotes environmental protection and awareness, is this week.
Celebrating its 56th year, this year’s Earth Day theme is “Our Power, Our Planet,” which stresses the importance of communities, educators, workers and families working together toward environmental progress.
“‘Our Power, Our Planet’ is not a political statement. It is a commitment to stewardship, resilience, and shared accountability — a call for every individual, community, and sector to exercise their power in service of the planet we all depend on,” reads the 2026 manifesto.
To celebrate Earth Day 2026, the Tennessee State Parks system will be offering educational, recreational and volunteer events across the state.
Here’s what to know.
When is Earth Day 2026?
Earth Day is April 22.
According to Earthday.org, the movement’s founders — inspired by the student anti‑war protests of the 1960s and 1970s — chose a weekday falling between Spring Break and final exams to maximize the greatest student participation.
Why is Earth Day celebrated?
The history of Earth Day dates back to 1962 with Rachel Carson’s New York Times bestselling book, “Silent Spring” which raised awareness and concern for living organisms, the environment and the links between pollution and public health.
U.S. Sen. Gaylord Nelson, a Democrat from Wisconsin, was concerned about worsening environmental conditions and galvanized by the massive 1969 oil spill off the coast of Santa Barbara. He launched the idea that would become Earth Day.
Nelson partnered with Republican U.S. Rep. Pete McCloskey and activist Denis Hayes to organize nationwide teach‑ins on April 22, expanding the effort beyond college campuses and rebranding it as Earth Day, an event that quickly gained national media attention and widespread public participation.
Tennessee State Parks system celebrates Earth Day 2026
Here’s a look at events planned by region, happening on and around April 22.
West Tennessee
Middle Tennessee
East Tennessee:
Diana Leyva covers trending news and service journalism for The Tennessean. Contact her at Dleyva@gannett.com.
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