The Department is required to allocate to each county or municipality a portion of franchise and excise tax revenues of every non-depository financial institution equal to 3% of that taxpayer’s net earnings, less 7% of the aggregate Tennessee ad valorem property taxes paid by the taxpayer on its real and tangible personal property. Form FAE186 is used by the Department in making this allocation.
If a non-depository financial institution maintains multiple branches or offices in Tennessee, the Department is required to apportion this amount in proportion to the outstanding loan and sales contracts receivable at each branch or office.
Reference: Tenn. Code Ann. § 67-4-2017.