Privilege tax and renewal fees

[ruggercsc]

How many of you are paying a Professional Privilege Tax to your home state and how much is it?  I just got the State of Tennessee Department of Revenue letter stating my annual tax is due ($400), which I knew was coming but still sucks.  In Tennessee you will need to shell out $940 every two years ($400 annual privilege tax, $140 renewal fee) to keep your license active (not including the PDH fees which I just shelled out another $789 for a 15PDH seminar a month ago). 

How does that compare to your home state?  I am wondering what the $ range is to keep your license active.  

• Renewal Fee
  
• Professional Privilege Tax
  
• PDH fees
  
• TOTAL COST  
  

Interesting article on how the legislature is discussing eliminating the Professional Privilege Tax here, but I don't believe it actually went anywhere.  Stockbrokers outnumber all other professional combined who have to pay this tax.  I had no idea that there were that many stockbrokers.

http://www.tennessean.com/story/news/politics/2017/01/17/bill-aims-scrap-privilege-tax-attorneys-physicians-and-others/96552350/

 

[Ken PE 3.1]

There are cheaper pdh's out there.

Tennessee is the only state I have seen so far with a stupid tax on licenses.

Sent from my SM-G920P using Tapatalk

 

[smahurin]

Admittedly never heard of a privilege tax or a tax on licensure.  Maybe other states do it, but I'm not aware of any off the top of my head.  That is a huge fee.  

 

[Ken PE 3.1]

Funny how we were just discussing this, but I got my notice that the Professional Privilege Tax is coming up.

Not totally sure I understand the concept of a tax on the privilege for being a professional.

 

[Supe]

Sounds very European, so there must be merit to it.

 

[RBHeadge PE]

I think that Tennessee is the only state with the professional privilege tax. I have a lot of colleagues down there and they all complain about it.

Maryland charges $76 every two years for renewal.  PDHs are required every renewal period. PDH costs vary. For instance, employer provided training could make it effectively free. I've seen package deals where all of the PDHs can be acquired via online courses for under $200.  Or it could be really expensive if only taking engineering classes at ABET approved schools.

 

[tj_PE]

75 every 2 years for PE

116 every 2 years for RA

I pretty much get my CEUs/PDHs covered with in house classes we do. 

 

[snickerd3]

wow sounds like just a money grab.  pay us to do business here.  If IL did that my license would be in inactive status.  I can handle $60 every 2 yrs not to use it, but I couldn't justify that. 

 

[thekzieg]

75 every 2 years for PE

116 every 2 years for RA

I pretty much get my CEUs/PDHs covered with in house classes we do. 

For what state? WA doesn't need them last I checked.

 

[tj_PE]

For what state? WA doesn't need them last I checked.

hm. maybe I just need them for RA. Not sure. but my structures review count anyway so I don't really pay atttention. haha. 

 

[nmaevh]

For what state? WA doesn't need them last I checked.

You're right. Washington just needs the two year renewal fee.

 

[Parkite]

I am registered in Alaska, Washington, Oregon, California, and Utah. I am inactive (not retired) in Tennessee due to that $400/yr professional privilege tax. I just went through the pricing for these states and they are:

They all have 2-year renewal periods. They all have 30-PDH requirements per renewal period, except for Washington and California.

Alaska -$150
Washington - $116
Oregon - $150
California - $115
Utah - $73
Tennessee - $140 (I still have to pay this because I am inactive)

For renewal dates, some states have a hard date that every PE/SE must renew. These states are Alaska, Utah, Oregon, and Tennessee. Washington the renewal date is based on your birthday (every even year on your birthday). California is the end of the yearly quarter you were awarded your PE/SE.

For PDH's the best bang for the buck I have found is the local professional organizations. Chose whichever one is the most active. I am in Utah, so the Structural Engineers Association of Utah is the most active. Various suppliers often provide free ones, which sometimes involve some good training. E.g. I was able to get a free 7-hours, and free lunch, from Simpson Strong-Tie. Another free resource for PDH's is FEMA (https://training.fema.gov/is/). Remember you can just say a training is worth so many PDH's. So the FEMA courses just give CEU's, but you can just clam them as PDH's (after multiplying by 10).

Another simple way to get free PDH's is to presentations or seminars to universities. Or write an article for your local professional society. I know if I go talk at the local university on being self employed, or being an engineer, will count all of my time preparing and presenting as PDH's. The trick here is just to make sure you record the hours.

 

[ptatohed]

How many of you are paying a Professional Privilege Tax to your home state and how much is it?  I just got the State of Tennessee Department of Revenue letter stating my annual tax is due ($400), which I knew was coming but still sucks.  In Tennessee you will need to shell out $940 every two years ($400 annual privilege tax, $140 renewal fee) to keep your license active (not including the PDH fees which I just shelled out another $789 for a 15PDH seminar a month ago). 

How does that compare to your home state?  I am wondering what the $ range is to keep your license active.  

• Renewal Fee
  
• Professional Privilege Tax
  
• PDH fees
  
• TOTAL COST  
  

Interesting article on how the legislature is discussing eliminating the Professional Privilege Tax here, but I don't believe it actually went anywhere.  Stockbrokers outnumber all other professional combined who have to pay this tax.  I had no idea that there were that many stockbrokers.

http://www.tennessean.com/story/news/politics/2017/01/17/bill-aims-scrap-privilege-tax-attorneys-physicians-and-others/96552350/

$940/2 yr!!!  Dude, that is near extortion!  $400 annual "Privilege Tax"???  Tennessee is the one who should be privileged to have fine engineers in their state.  Honestly, those fees are beyond absurd and unreasonable. 

In CA, it used to be $200/2 yr but they recently lowered it to $125/2 yr.  No PDH.  Renewal typically paid for by employer.    

I feel for you rugger. 

 

[P-E]

^Yes

Sounds more like fines than fees.  Terrible. 

 

[smahurin]

Really what it sounds like is just a mechanism to prevent out of state firms from working in Tennessee.  While it's a significant sum of money, if you live in TN and do most of your work in TN it's probably not a huge hindrance.  But it seems like it would really be prohibitive for out of state firms to carry TN licenses for sporadic jobs.

It's protectionism state style.  Not to get too political, but protectionism can be an easy sell for local politicians.  Whether its actually good policy is a totally different discussion though.

 

[Ken PE 3.1]

Really what it sounds like is just a mechanism to prevent out of state firms from working in Tennessee.  While it's a significant sum of money, if you live in TN and do most of your work in TN it's probably not a huge hindrance.  But it seems like it would really be prohibitive for out of state firms to carry TN licenses for sporadic jobs.It's protectionism state style.  Not to get too political, but protectionism can be an easy sell for local politicians.  Whether its actually good policy is a totally different discussion though.

If you look at the breakdown of the people, most of the professional licenses are out of state. They have a lot of stock brokers in TN.

Sent from my SM-G920P using Tapatalk

 

[ruggercsc]

Really what it sounds like is just a mechanism to prevent out of state firms from working in Tennessee.  While it's a significant sum of money, if you live in TN and do most of your work in TN it's probably not a huge hindrance.  But it seems like it would really be prohibitive for out of state firms to carry TN licenses for sporadic jobs.

It's protectionism state style.  Not to get too political, but protectionism can be an easy sell for local politicians.  Whether its actually good policy is a totally different discussion though.

Since there is no State Income Tax in Tennessee, it is an just an additional source of Revenue.  The legislature keeps talking about repealing it, but I am not holding my breath.     

 

[cupojoe PE PMP]

Since there is no State Income Tax in Tennessee, it is an just an additional source of Revenue.  The legislature keeps talking about repealing it, but I am not holding my breath.     

Do licensees who live outside of TN but hold a TN license need to pay this tax?

 

[Ken PE 3.1]

On 5/1/2017 at 11:45 AM, ruggercsc said: Since there is no State Income Tax in Tennessee, it is an just an additional source of Revenue.  The legislature keeps talking about repealing it, but I am not holding my breath.     

Do licensees who live outside of TN but hold a TN license need to pay this tax?

Yes

Sent from my SM-G920P using Tapatalk

 

[willsee]

Do licensees who live outside of TN but hold a TN license need to pay this tax?

Yes...as it sits in my email right now