Affordability Pitch by Tennessee Republicans Includes Sales Tax Exemption for Groceries, Greater Savings for Computers During Tax Holiday

grocery shopping

Republicans in the Tennessee State House have already submitted bills for the January 2027 legislative session to address affordability, including legislation that would exempt key groceries from state sales taxes and a bill to add more expensive computers to the state’s annual sales tax holiday.

Tennessee State House Speaker Cameron Sexton (R-Crossville) submitted House Bill (HB) 6 last Thursday, while both House Majority Leader William Lamberth (R-Portland) and Tim Hicks (R-Gray) signed on as early sponsors on Monday.

As introduced, the legislation would amend Tennessee law to specifically exclude the sale of “milk, eggs, and bread” from the state sales tax.

The second bill is HB 7, introduced by State Representative Kevin Raper (R-Cleveland), which would amend Tennessee law to include computers priced up to $2,500 among items included in the Volunteer State’s sales tax holiday, which has taken place every summer since 2006.

Currently, the tax holiday only includes computers priced up to $1,500, despite industry reports estimating that consumer computers would increase in price by about 17 percent over 2026, with continued hikes expected in the future, as a result of artificial intelligence (AI) data centers.

If passed by the General Assembly and signed into law by U.S. Senator Marsha Blackburn (R-TN), who will begin serving as Tennessee’s 51st governor in January, HB 6 would take effect in July 2027. However, HB 7 would take effect immediately upon the governor signing it.

The legislative push follows remarks Blackburn made shortly after her victory, when she said addressing affordability concerns would be a primary focus of her administration.

“Tennesseans have been very specific that the cost of living is going to be a top issue for them and getting that cost of living down,” said Blackburn last week. “As we begin our transition we are already going to be focusing on some things we can do there.”

Before the election, Blackburn also pledged to “make affordability a top priority” in a column she wrote last month for The Tennessee Star, where she specifically addressed homeownership.

“Too many hardworking Tennesseans are doing everything right but still cannot afford to buy a home. The cost of construction, restrictive zoning, burdensome regulations and lengthy permitting processes can all drive up the price of a house before a family ever gets the keys,” wrote Blackburn.

Blackburn added, “We need to cut through that red tape by pursuing permitting and zoning reforms that make it easier to build, easier to buy, and easier for a young family to put down roots in Tennessee.”

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Tom Pappert is a 2025 recipient of the Dao Prize and the lead reporter for The Tennessee Star. He also reports for the Star News Network. Follow Tom on X. Email tips to [email protected].

 

 

 

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