Bill > HB1767

This bill exempts the retail sale of food and food ingredients from Tennessee's sales and use tax for families that meet specific income and dependency requirements. To qualify, a family must have a household income not exceeding 300% of the amount needed for a student to receive free or reduced-price lunch, as determined by the U.S. Department of Agriculture's Food and Nutrition Service, and must claim a qualifying child or relative as a dependent on their federal income tax return, typically evidenced by a Form 1040. Eligible families will need to apply for an exemption with the commissioner of revenue, who will then issue a sales and use tax exemption certificate and a wallet-sized card; this card or a copy of the certificate must be presented to retailers at the time of purchase, and retailers must record the exemption account number to document the transaction. The provisions related to creating rules and forms take effect immediately upon becoming law, while the tax exemption itself will be effective starting July 1, 2026.

Budget and Finance

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB1767&ga=114