Amends TCA Title 57, Chapter 3 and Title 67.
Tennessee SB1367 eliminates the 4% state sales tax on the retail sale of food and food ingredients, while maintaining the 7% tax on prepared food, alcoholic beverages, candy, dietary supplements, and tobacco. The bill allows local governments to continue levying a tax of up to 2.75% on food and food ingredients and removes the requirement for a portion of the tax revenue to be earmarked for education. Additionally, it mandates monthly distributions to counties and municipalities to compensate for the loss of sales tax revenue from the exemption.
Tennessee SB1367 eliminates the 4% state sales tax on the retail sale of food and food ingredients, while maintaining the 7% tax on prepared food, alcoholic beverages, candy, dietary supplements, and tobacco. The bill allows local governments to continue levying a tax of up to 2.75% on food and food ingredients and removes the requirement for a portion of the tax revenue to be earmarked for education. Additionally, it mandates monthly distributions to counties and municipalities to compensate for the loss of sales tax revenue from the exemption.
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