Bill > SB0002

This bill, known as the "End the Grocery Tax by Closing Corporate Loopholes Act," proposes significant changes to Tennessee's tax code regarding the taxation of food and food ingredients. The bill aims to eliminate sales tax on groceries by amending several sections of Tennessee's tax laws, ensuring that retail sales of food and food ingredients will no longer be taxed. To address potential revenue impacts, the bill includes provisions to allocate funds to counties and municipalities based on exempt food sales, essentially maintaining their previous level of funding. The legislation modifies language in various code sections related to sales tax, food sales, and business licensing, removing references to taxable food sales and adjusting requirements for businesses. For example, the bill changes provisions for businesses like liquor stores, now requiring them to maintain at least 20% of sales from food and food ingredients sales, without specifying a tax rate. The bill is set to take effect on July 1, 2025, and represents a significant shift in Tennessee's approach to grocery taxation, potentially providing relief to consumers by removing sales tax on food purchases.

Budget and Finance

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB0002&ga=114