Tennessee is one step closer to potentially ending its grocery tax as a bill advances.
The bill, HB 2043/SB 1934, would prohibit state and local governments from taxing groceries.
“In a groundbreaking move to alleviate financial burdens on working families, Representative Aftyn Behn (D-Nashville) and Senator Charlane Oliver (D-Nashville) have successfully advanced their legislation to eliminate Tennessee’s grocery tax,” the spokesman for the Tennessee House Democratic Caucus said.
The bill passed out of the House Government Operations Committee on Monday and will advance to the House Finance Subcommittee. Next, it will be presented in the Senate Finance, Ways and Means Revenue Subcommittee.
“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, providing much-needed relief for working families. To address potential revenue decreases, the lawmakers plan to pair the grocery tax repeal with corporate tax reform, closing loopholes benefiting billion-dollar corporations,” the spokesman explained. Story courtesy of WVLT
