Bill > HB1842

This bill, effective July 1, 2026, aims to exempt most food and food ingredients from Tennessee's state sales and use tax, which is a tax levied on the purchase of goods and services. The bill amends various sections of Tennessee Code Annotated (TCA) to achieve this exemption, including removing language that previously subjected certain food sales to taxation and modifying provisions related to how tax revenue is allocated and how businesses qualify for certain licenses based on their food sales. Specifically, it removes a clause that earmarked a portion of the sales tax revenue from food for K-12 education, and it adjusts the criteria for businesses to qualify for specific licenses by removing the requirement that a certain percentage of their sales be from food taxed at a specific rate.

Budget and Finance

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB1842&ga=114