Bill > HB0021

This bill modifies Tennessee's tax code to change how food and food ingredients are taxed, specifically by removing the sales tax on these items while simultaneously making them taxable under a different part of the tax code. The bill amends several sections of Tennessee Code to implement these changes, including modifying how revenue from food sales will be allocated to counties and municipalities. Specifically, the bill ensures that counties and municipalities will receive an allocation amount equivalent to what they would have received before the food sales tax exemption, based on reporting of exempt food sales. The bill also adjusts language in various sections related to food sales, including modifying definitions and sales calculations for certain business licenses. Importantly, these changes are not immediate but will take effect on July 1, 2025, giving businesses and government entities time to prepare for the new tax treatment. The bill appears to be aimed at providing tax relief for consumers on food purchases while maintaining a mechanism for local governments to receive comparable funding.

Budget and Finance

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB0021&ga=114