Tennessee Republicans File Legislation to End Grocery Tax in 2025

Grocery Shopper

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.

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State Rep. Johnny Garrett Halts $800 Million Tax Increase Sponsored by Democrat

Johnny Garrett

State Representative Johnny Garrett’s (R-Goodlettsville) amendment to a Tennessee bill that would have enacted a massive tax increase passed Wednesday in the Finance, Ways, and Means Subcommittee.

According to a fiscal note on the bill before it was amended, it would have increased state revenue by nearly $800 million in taxes on business enterprises.

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Arizona Senate Republicans Introduce Tax Cut Bills for Groceries and Rent Payments

State Senate Republicans have introduced two bills that target Arizona’s grocery and rental taxes to give local families a financial break. Kim Quintero, the spokeswoman for the Senate Republican Caucus, told The Arizona Sun Times that it would be unwise for Governor Katie Hobbs (D) to veto bills like these should they pass the legislature.

“It would not be wise of the Governor to veto the food tax bill, as this will provide immediate inflation relief to those living paycheck to paycheck, and it’s something that resonates with a large portion of her voter base,” Quintero said via email.

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Tennessee Suspends Grocery Tax Through the End of August

Tennesseans may notice their grocery bills are a little less this month, as Gov Bill Lee announced Monday that the long-awaited suspension of tax on groceries went into effect state-wide. The governor first proposed the idea in March.

“As Americans see their cost-of-living skyrocket amid historic inflation, suspending the grocery tax is the most effective way to provide direct relief to every Tennessean,” Lee said at the time.

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Youngkin Rallies at 2021 Campaign Location to Sign Budget

HENRICO, Virginia — Governor Glenn Youngkin held a campaign-style rally to ceremonially sign Virginia’s Fiscal Year 2023-2024 budget. On Tuesday, Youngkin spoke from the aisles of the Tom Leonard’s grocery store where he filmed a grocery tax-related campaign ad and where he held one of his final rallies during the campaign.

“Nine months ago we were right here with many of you, and we in fact were talking about the impact that rising cost of groceries were have on families,” Youngkin said to a crowd of supporters, reporters, former GOP candidates, and current GOP politicians standing next to bins of produce.

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State Senate Committee Advances 1.5 Percent Grocery Tax Cut for Virginians, Leaves Local One Percent Intact

The Senate Finance and Appropriations Committee (SFAC) advanced a bill that would eliminate the state sales and use tax of 1.5 percent on groceries and personal hygiene products. In its Thursday meeting, the committee combined Senator Jennifer Boysko’s (D-Fairfax) SB 451, focused on the hygiene products, with bills from Senator Stephen Newman (R-Beford), Senator Ryan McDougle (R-Hanover), and Senator Bill DeSteph (R-Virginia Beach) that included all groceries.

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Grocery Tax Cut, Doubled Standard Deduction Advance in House of Delegates

The House of Delegates Finance Committee advanced a bill to eliminate Virginia’s grocery tax and a bill to double the standard deduction on income tax; those are two key promises Governor Glenn Youngkin made in his campaign as part of his focus on “kitchen-table issues.”

HB 90, sponsored by Delegate Joe McNamara (R-Roanoke) exempts food for human consumption and essential personal hygiene items from state and local sales taxes. On Monday, Delegates Candi Mundon King (D-Prince William) and Delegate Richard ‘Rip’ Sullivan (D-Fairfax) expressed concern about how a different Youngkin-inspired tax bill would impact low-income Virginians. McNamara recalled those remarks in the Wednesday committee meeting.

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Virginia Gov. Northam Proposes Partial Grocery Tax Cut, Other Youngkin-Inspired Tax Policies

Continuing his “Thank You, Virginia” tour, Governor Ralph Northam announced that his upcoming budget proposal will include tax cuts and refunds, including some similar to those Governor-elect Glenn Youngkin has called on Northam to include in his budget.

“When Virginia cuts taxes next year, it should be done in a way that benefits working people,” Northam said in a Tuesday press release. “Many professionals made it through the pandemic fine, as their work simply moved online. But workers haven’t been so lucky when their jobs require close contact with other people. Some jobs simply can’t move online—restaurant workers, early childhood educators, home care attendants, and others—and we all depend on the people who do this work. Virginia can help working people by eliminating the state grocery tax, providing one-time rebates, and giving a tax break to people who are working.”

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Virginia Governor-Elect Youngkin’s Top Campaign Promises in Education, COVID-19, Economics, Law Enforcement, and Elections Policy

Glenn Youngkin in crowd during a rally

Glenn Youngkin will be Virginia’s next governor, part of a near-complete Republican takeover of Virginia’s government. In 2022, Republicans will be governor, attorney general, and lieutenant governor. They will also likely hold a two-seat majority in the House of Delegates, although two close races may go to recounts. However, they will not hold the Senate, where Democrats have a 21-to-19 majority. Still, if one Democratic senator flips on a vote, that would create a tie that lieutenant governor-elect Winsome Sears would break. Minority Leader Todd Gilbert (R-Shenandoah), who House Republicans nominated for Speaker, has said that Republicans do have a mandate, but he is also aware of the need to work across the aisle with the Senate.

All that gives political novice Youngkin strong Republican support to launch efforts to fulfill his campaign promises, but also sets him up for serious challenges to get his policies across the finish line. Still, Virginia governors have extensive power to set policy and funding priorities, and Youngkin will also have executive authority, which will allow him to fulfill some key promises without legislative buy-in.

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