GOP Looking To Revive Tennessee Grocery Tax Elimination Amid Cost Of Living Concerns

Image Credit: State Representative Todd Warner / Facebook

The Tennessee Conservative [By Olivia Lupia] –

As cost of living continues to become a more pertinent issue for many Tennessee residents, Republicans are for the second consecutive year running a bill which would exempt food and food ingredients from state sales tax.

Rep. Todd Warner (R-Chapel Hill-District 92) has introduced HB1530, a revival of a similar bill, HB0021, which ultimately stalled in the legislature last year after it was placed behind the budget. Tennessee is one of 10 states that collects a tax on groceries, with consumers paying 4% in state taxes and local governments allowed to add up to 2.75% should they choose.

HB1530 would repeal the 4% sales tax on food and food ingredients beginning July 1, 2026, while still allowing local governments to set their own grocery tax. Items such as prepared foods, alcohol, candy, tobacco, and diapers would still be taxed.

Warner’s iteration of the bill contains the same language as its predecessor which was carried by Rep. Elaine Davis (R-Knoxville-District 18) and Senator Bo Watson (R-Hixson-District 11).

According to House Majority Leader William Lamberth, the GOP is committed to addressing the issue and reiterated last year’s version was hindered due to budgetary concerns.

“Last year, when we were looking at the budget, the money just wasn’t there to be able to cut that tax, so it went behind the budget,” Lamberth said. “It is sitting there in finance [subcommittee] and is ready to reactivate the moment that we can figure out a way to fund that bill. That’s the conversation that we’re kicking off right here at the beginning of the session.”

The state is anticipating a difficult budget this year, so it is unclear if this bill, or any other similar proposals, will be made a priority by Republicans with limited funding available when leadership has already indicated an intent to expand the school voucher program and more aggressively address illegal immigration. But Lamberth believes the cut is possible this year without finding another revenue source to replace it. 

“I can go on and on of the taxes that we’ve cut, and we’re still able to make sure that teachers are getting raises, and state employees are getting raises, and roads are getting paved, and we’re taking care of just the needs of Tennesseans,” he said. “If we do this in a very methodical fashion, and we do it within a balanced budget, there’s no reason why we can’t continue to cut taxes this year.”

But some Democrats remain skeptical about Republicans’ willingness to commit to the full tax cut, and question how the missing revenue will be replaced. Rep. John Ray Clemmons (Nashville-District 55) worries that cutting the tax without a replacement plan will lead to cuts in other areas.

“The math doesn’t add up with their proposal,” Clemmons said. “We’ve got to find a way to fill in that revenue gap, and there aren’t many ways to do that. We can repeal the governor’s welfare program, otherwise known as a voucher scam. We can look at some of these corporate tax breaks that we’ve given in recent years for no reason whatsoever, and we could legalize cannabis in the state of Tennessee. That would generate astounding amounts of revenue that we could use that money to put it right back into the pockets of Tennessee families.”

Per Clemmons, the Democrats intend to bring their own version of the grocery tax bill which they hope will “resonate” with people as they are facing increased costs.

About the Author: Olivia Lupia is a political refugee from Colorado who now calls Tennessee home. A proud follower of Christ, she views all political happenings through a Biblical lens and aims to utilize her knowledge and experience to educate and equip others. Olivia is an outspoken conservative who has run for local office, managed campaigns, and been highly involved with state & local GOPs, state legislatures, and other grassroots organizations and movements. Olivia can be reached at olivia@tennesseeconservativenews.com.