Bill > HB0002

This bill, known as the "End the Grocery Tax by Closing Corporate Loopholes Act," proposes several changes to Tennessee's tax code aimed at eliminating sales tax on food and food ingredients. The bill removes the existing sales tax on grocery items, ensuring that retail sales of food will no longer be taxed, with the exception of some specific provisions. It also modifies how tax revenues are allocated, requiring counties and municipalities to receive an amount equivalent to what they would have received before the food tax exemption, based on reporting of exempt food sales. The bill adjusts several sections of Tennessee Code related to tax definitions and sales requirements, including modifications to how businesses in certain sectors (like liquor licensing) calculate their sales. Specifically, it changes language around sales calculations to remove references to taxable food sales and instead focus on overall food and food ingredient sales. Additionally, the bill includes provisions to ensure that local governments are financially compensated for the loss of grocery tax revenue. The changes are set to take effect on July 1, 2025, with the stated goal of providing relief to consumers by eliminating the tax on essential food items.

Budget and Finance

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB0002&ga=114