
Additional relief from the rising cost of food might soon be coming to Tennesseans if the General Assembly approves a proposal to eliminate the state’s grocery tax. House Bill 21,sponsored by State Rep. Elaine Davis, R-Knoxville, and House Majority Leader William Lamberth, R-Portland, would end the state tax on retail sales of food and food ingredients without local revenue loss or raising a single penny of taxes on Tennessee businesses.
“We have all felt the impact of rising food prices over the last few years, and working families have struggled to put food on the table as a result,” Davis said. “This legislation will save Tennesseans hundreds of dollars annually and not have any consequences for our business owners or their employees.”
The state sales tax on food and food ingredients is currently 4%, plus the local sales tax rate. This includes food items like eggs, bread, canned goods, produce, spices and condiments.
The Volunteer State remains one of the lowest-taxed states in the nation and collects zero state income tax.
Comments