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The Center Square [By Jon Styf] –
Tennessee Gov. Bill Lee did not include a grocery tax holiday in this year’s budget proposal, but a proposed bill would begin allowing counties and municipalities to cut or remove grocery tax.
Senate Bill 2520 was set to be heard Tuesday in the Senate Finance, Ways and Means Revenue Subcommittee but was instead delayed two weeks to March 5.
The bill estimates local government will collect a combined $499 million in grocery tax next fiscal year at rates up to 2.75%. A fiscal note on the bill says it is unclear how many local governments would lower or remove those taxes if given that option. Currently, the average local sales tax rate is 2.5% while the state grocery sales tax is 4%.
Companion House Bill 2641 is scheduled to be heard in the House Finance, Ways and Means Revenue Subcommittee on Wednesday. House Majority Leader William Lamberth, R-Portland, is the sponsor.
A pair of state Democrats have proposed to end grocery taxes across the state in House Bill 2043 and Senate Bill 1934, which have been referred to committee but have not been placed on a calendar.
About the Author: Jon Styf, The Center Square Staff Reporter – Jon Styf is an award-winning editor and reporter who has worked in Illinois, Texas, Wisconsin, Florida and Michigan in local newsrooms over the past 20 years, working for Shaw Media, Hearst and several other companies. Follow Jon on Twitter @JonStyf.
3 Responses
Governments have never met a tax they didn’t like.
Tennessee grocery tax is not too high. Companies like Food City just charge too much money. I’m all for lowering or eliminating any tax. But that addressing a symptom, not the ailment.
Stores need to stop gouging.
Are you sure this is not a deceitful tactic to raise the grocery tax? In many cases they actually mean the opposite of what they say. I don’t think this is a good idea handing this over to someone else who is not elected or held accountable to Tennesseans.