Republicans in the Tennessee General Assembly filed legislation this week that would abolish the sales tax on groceries in the state, and in a press release explain their legislation would maintain current funding for schools while avoiding tax increases for business owners.
House Bill 21, submitted by State Representative Elaine Davis (R-Knoxville) on Thursday, would prohibit sales taxes from being levied on food and food ingredients in Tennessee, while simultaneously requiring the General Assembly to allocate “an amount substantially equal to the amount that would have been allocated” based on the 0.5 percent of revenue from taxing groceries that is earmarked for schools. Groceries are currently taxed at 4 percent in Tennessee.
Noting recent increases to the price of food, Davis stated in a Friday press release, “Tennesseans know best how to spend their own money. Repealing taxes on essential items like food and personal hygiene products has been one of my top legislative priorities. This legislation will save families hundreds of dollars annually and not have any consequences for our business owners or their employees. I’m honored to carry this legislation with support from House leadership.”
While the bill has yet to find a sponsor in the Tennessee Senate, the version led by Davis is co-sponsored by House Majority Leader William Lamberth (R-Portland.)
“Repealing the state grocery tax without burdening our businesses is a critical step in our ongoing efforts to reduce the financial burden on working families and ensure that basic necessities are more affordable for all Tennesseans,” stated Lamberth on Friday.
He argued that eliminating the sales tax on food “is not just about saving money,” but it will also help “families thrive by making Tennessee a more affordable place to live.”
Lamberth added, “I’m proud to continue our supermajority’s tradition of good fiscal stewardship that Tennesseans have come to expect and rightly deserve.”
The Republican-led bill comes after State Senator Charlane Oliver (D-Nashville) and State Representative Aftyn Behn (D-Nashville) submitted the End the Grocery Tax by Closing Corporate Loopholes Act, which would eliminate the grocery tax.
Both efforts to remove Tennessee’s tax on groceries come after lawmakers passed legislation earlier this year allowing local governments to unilaterally cut or end the grocery tax, with Governor Bill Lee signing the legislation in May.
State lawmakers and Lee previously enacted legislation that afforded Tennesseans a three-month reprieve from grocery taxes amid rising prices in 2023.
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Tom Pappert is the lead reporter for The Tennessee Star, and also reports for The Pennsylvania Daily Star and The Arizona Sun Times. Follow Tom on X/Twitter. Email tips to [email protected].
