PROPOSED BILL ADVANCES TO END THE GROCERY TAX IN TENNESSEE
The Tennessee House of Representatives advanced a bill that would eliminate the state’s grocery tax.
House Bill 2043 passed out of the House Government Operations Committee yesterday and will now advance on to the House Finance subcommittee.
State Representative Aftyn Behn and Senator Charlane Oliver introduced the legislation in November of last year.
Tennessee’s sales tax rate on food currently stands at 4%, with local jurisdictions able to add up to an additional 2.75% in local sales taxes. The proposed legislation prohibits state and local governments from taxing groceries.
To address potential revenue decreases, the lawmakers plan to pair the grocery tax repeal with corporate tax reform, which they say would close loopholes benefiting billion-dollar corporations.
The next hurdle will be today Senator Oliver presents the bill today in the Senate Finance, Ways, and Means Revenue Subcommittee.