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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