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Taxes and Incentives

 Loudon County Tax

Calculate Your County Property Tax

County property tax rate = $1.85/$100 Property tax is levied on real and personal property

Assessment ratios for real and personal property include:

industrial real property = 40%

commercial real property = 40%

industrial and commercial tangible personal property = 30%

residential and agricultural property = 25%

Property tax exemptions include: goods-in-process, finished goods inventories, and goods-in-transit (Freeport)

Visit the Loudon County Property Assessor Online

 State & Local Taxes

TaxStateMonroe & Loudon
Corporate Excise 6.5% none
Franchise $0.25 per $100 none
Sales and Use 7.0% 2.0%
Personal Income none on earned income; 6% of interest on stock or dividends none
Initial Corporate Organization Fee $100-600 none
Utility Gross Receipts 3% none
Local Business Tax none none
Unemployment Insurance 2.7% new employers none
Motor Vehicle Tax varies according to weight and size varies according to weight and size

Monroe County Tax

Property Tax The Monroe County tax rates are $2.09 per $100 of assessed value. The Town of Vonore’s tax rate is $0.3693 per $100 of assessed value.
Industrial & Commercial Real Property (land & building) 40%
Industrial & Commercial Personal Property machinery & equipment) 30%
Residential & Farm Property 25%

Computation example:

Market value of land & building =$_______
Multiply by 40% =$_______
Divide by $100 =$_______
Apply Monroe County tax rate of $2.09 per 100 value. =$_______
Apply Town of Vonore tax rate ($0.3693)
Market value of machinery & equipment =$_______
Multiply by 30% =$_______
Divide by $100 =$_______
Apply Monroe County ($2.09)

Apply Town of Vonore tax rate ($0.3693)
if in Monroe County =$_______
Local tax bill =$_______

Visit the Monroe County Property Assessor Online

Sales and Use Tax

State and local sales taxes are levied on
the purchase or lease price of tangible
personal property purchased or leased in
Tennessee, except items purchased for
resale. Taxable services, as defined under
the law, are subject to sales tax.
State Sales Tax: 7%
Monroe County Sales Tax: 2.25%

Unemployment Tax

The first $7,000 in employment wages
are taxed at the rate of 2.7%. After three
calendar years, the employer is assigned a
tax rate based on experience. Tennessee
unemployment compensation taxes serve
as a credit against federal unemployment
taxes owed.

Workers’ Compensation

Premium rates vary by occupational
categories. Premium = rate x employee
earnings. The premium rate for clerical
workers is $0.41 per $100 of earnings and
for warehouse/distribution it is $5.69 per
$100 of earnings.

Tennessee Tax Incentives

Standard Job Tax Credit – A tax credit of $4,500 per job that can be used to offset a company’s franchise and excise tax liability.
Enhanced Job Tax Credit – A tax credit that of $4,500 per job that is in addition to the Standard Job Tax Credit for companies that locate or expand in Tennessee counties designated as Tier 2 or Tier 3 Enhancement Counties, which are those with greater economic distress.
Super Job Tax Credit – A $5,000 per job tax credit for either (a) companies making a capital investment of $100 million or more and creating a minimum of 100 new jobs paying at least 100% of Tennessee’s average occupational wage or (b) companies establishing or expanding a regional, national or international headquarters with a capital investment of $10 million or more and creating 100 HQ jobs paying at least 150% of Tennessee’s average occupational wage.
Industrial Machinery Tax Credit – A tax credit of 1% - 10% for the purchase, third-party installation and repair of qualified industrial machinery.

Grant & Loan Programs

TRDA serves as a Liaison Between New or Expanding Businesses and Local and State Governments to Assist in Obtaining Eligible Funding for Development.

Incentives and Grants

  • Administered by the Tennessee Department of Economic and Community Development
  • FastTrack Infrastructure Program

    Grants made to local communities for public infrastructure improvements
    Must be for specific infrastructure projects benefitting one or more companies committed to creating new jobs and/or making new capital investments
    Cover infrastructure such as rail, road, port, airport, site, water, sewer, gas and telecommunication improvements
    Require local matching funds based on a community’s ability to pay

    FastTrack Job Training Assistance Program

    Reimbursable grant assisting companies with training expenses and the development of customized training plans
    Two reimbursement methods:
    Traditional – reimbursement for classroom instruction, certain travel expenses, system support applications, instructor for on-the-job training, and specific vendor training
    Job Based Training – offers the company reimbursement of training funds determined from project-specific payroll records

    FastTrack Economic Development Fund

    Provides additional grant support for companies expanding or locating in Tennessee with reimbursable grants made to local industrial development boards
    Aids companies in a variety of ways, including relocation expenses, temporary office space, capital improvements, retrofitting and other expenditures not previously covered by FastTrack infrastructure or job training grants
    Only used in exceptional cases where the impact of the company on a given community is significant.

    FastTrack eligibility and funding levels are determined by:

    Amount of company investment
    Number of new hires
    Wages of new hires
    Types of skills and knowledge that must be obtained
    Location of the project

Community Development Block Grant (CDBG)

  • Administered by the Tennessee Department of Economic and Community Development
  • Two programs included in the CDBG program are available to local communities
    • Economic development program - grants for industrial infrastructure or loans for industrial buildings and equipment
    • Community development program - grants for water and wastewater, housing rehabilitation, and community livability
  • Grant or Loan must meet one of three national objectives
    • principally benefit low and moderate income persons
    • eliminate or prevent slums and blight
    • address imminent health and safety problems
  • Maximum grant or loan amount is $500,000 (local match required)
  • Interest rates
    • Years 1-5 - 3 points below prime
    • Years 6-10 - 2 points below prime
    • Years 11-20 - 1 points below prime

Tennessee Valley Authority Economic Development Loan Fund

  • Administered by the Tennessee Valley Authority (TVA)
  • Revolving loan program designed to stimulate investment and job creation in the TVA region
  • Loudon County Economic Development Agency, through a cooperative agreement with TVA, serves as the co-sponsor on loan applications
  • Loans are available to new or expanding industrial companies for fixed assets such as buildings, machinery, and equipment
  • Loan applications are evaluated based on project's financial viability, its local economic impact, the amount of funds leveraged, and the expected increase in power sales
  • Maximum loan amount varies according to type of project, but no project can exceed $2 million
  • A minimum of one job should be created or retained for every $5,000 invested by TVA
  • Interest rates are below prime and are considered on a case-by-case basis
  • Loan terms vary depending on project
    • 10 year term for new plant, plant expansions, and plant retention loans
    • 7 year term for loans secured by machinery and equipment
    • 5 year term for infrastructure loans

Small Business Administration Loans

  • Provides financial, technical, and management assistance to help small business owners to run and grow their businesses
  • Provides business loans, loan guarantees, and disaster loans worth more than $45 billion
  • Nation's largest financial backer of small businesses
  • Service Corp of Retired Executives (S.C.O.R.E.) counseling offered through the Loudon County Chamber or Commerce. Some of the subjects S.C.O.R.E. volunteers can help you with are:
    • stages of forming a business including start up requirement for all Tennessee businesses and obtaining business licenses and taxes
    • how to prepare a business plan
    • insurance for the small business
    • how to secure financing
    • selecting the legal structure for your business
    • what business records to keep
  • East Tennessee Development District assists with Small Business Administration loan applications

Industrial Development Bonds

  • Active industrial development bond boards exist in Loudon and Monroe counties.
  • Responsible for the issuance of bonds for industrial development
  • Tax-free bonds are available for new projects.
  • Investment in real and/or personal property cannot exceed $10 million within a 3-year period or the bond will become a taxable issue in Loudon County.
  • Rates normally are 70% of prime plus handling
  • TRDA will assist businesses with the process