Taxes
Tennessee and Morristown offer businesses and citizens a competitive tax structure and provides a cost-effective place to live and do business.
Taxes at a Glance
| Tax | State | Local (Hamblen County) |
| Sales & Use | 5.5% on food & food ingredients; 7% on all other tangible goods | 2.75% |
| Corporate/Excise | 6.5% | None |
| Franchise | $.25 per $100 | None |
| Personal Income | 6% of interest, dividends | None |
| Business Tax | None | |
| General Property | None | See below |
Visit www.tennessee.gov. for more information on State of Tennessee taxes.
Property Tax Rates
- Hamblen County has one of the lowest property tax rates in the State (out of 95 counties)
- County Property tax rate = $1.85/$100 ($1.64/$100 inside Morristown)
- City of Morristown property tax = $1.05/$100
- City/County combines property tax rate = $2.69/$100 - Click here for PDF of example of industrial property taxes.
- Assessment ratios for real and personal property include:
- Industrial real property = 40%
- Industrial tangible personal property = 30%
- Commercial real property =
- Residential and agricultural property = 25%
Incentives
Serving as the liaison between new and expanding businesses and local and state agencies, the Morristown Area Chamber of Commerce can assist you in acquiring eligible funding for development.
Industrial Development Bonds
The Industrial Development Board of the City of Morristown is responsible for the issuance of bonds for the purpose of industrial development.
Payment in Lieu of Taxes (P.I.L.O.T.)
The Industrial Development Board of the City of Morristown offers a P.I.L.O.T. program which is available for both new and expanding industries meeting certain job creation and financial investment levels. The P.I.L.O.T. program offers some tax abatement to assist in reducing the start-up costs of new projects and expansion costs for existing industries.
Grant and Loan Programs
Tennessee’s competitive incentive packages for both new and existing industries, along with practical grant and loan programs, make doing business in Tennessee a smart decision.
- Administered by the Tennessee Department of Economic & Community Development , these programs encourage sustainable job creation and substantive community development.
- Corporate Tax Incentives
- Tennessee FastTrack Infrastructure Development Program (FIDP)
- Tennessee FastTrack Job Training Assistance Program (FJTAP)
- Community Development Block Grants (CDBG)
- Tennessee Job Skills
- Energy Grant & Loan Programs
- Tennessee also offers a State Industrial Access Grant that is administered by the Department of Transportation. These funds are available to local communities for the development of access to industrial areas.
- Tennessee Valley Authority Economic Development Loan Fund is a revolving loan program designed to stimulate investment and job creation in the TVA region.
- Small Business Administration Loans provide financial, technical, and management assistance to help small business owners to run and grow their businesses.