A State Representative and a State Senator – both representing the Nashville area – have filed two bills which would lower Tennessee’s sales tax rate and outright exempt fresh, frozen, or canned fruits and vegetables from a sales tax.
Representative John Ray Clemmons (D-Nashville-HD55) filed HB1743 and HB1745 on January 13, 2022. State Senator Heidi Campbell (D-Nashville-SD20) signed on officially on January 25, 2022, sponsoring companion bills SB1898 and SB1899.
The description for HB1743/SB1898 says, “AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 6, relative to the sales and use tax. Taxes, Sales – As introduced, reduces the state sales and use tax rate from 7 percent to 6 percent. – Amends TCA Title 67, Chapter 6.”
The state House version has been passed on first and second consideration, referred to the Finance, Ways, and Means Committee, and most recently was referred to the Finance, Ways, and Means Subcommittee on January 24, 2022. Further action in the Senate has not yet been taken.
HB1745/SB1899 also aims at cutting taxes, specifically on the purchase of fruit and vegetables. The bill description reads, “AN ACT to amend Tennessee Code Annotated, Section 67-6-228, relative to food and food ingredients.
Taxes, Sales – As introduced, exempts the retail sale of fruit and vegetables for human consumption from the food retail sales tax. – Amends TCA Section 67-6-228.”
Tennessee Code Annotated, Section 67-6-228 is amended by deleting the current subsection (a) and inserting the following:
(1) Notwithstanding this part to the contrary and except as otherwise
provided in subdivision (a)(2) and subsection (b), the retail sale of food and food
ingredients for human consumption is taxed at the rate of four percent (4%) of
the sales price.(2) Notwithstanding this part to the contrary, the retail sale of fruit and
vegetables that are fresh, frozen, or canned and for human consumption is
exempt from the tax levied by this chapter.
The means that the retail tax rate on fruits and vegetables goes from 4% to zero.
The state House version on this bill has also been passed on first and second consideration, referred to the Finance, Ways, and Means Committee, and most recently was referred to the Finance, Ways, and Means Subcommittee on January 24, 2022. Further action in the Senate has not yet been taken.
There are currently no fiscal impact statements available for either of the two bills.
These bills would go into effect on July 1 of this year, if passed and signed into law.
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Aaron Gulbransen is a reporter at The Tennessee Star and The Star News Network. Email tips to [email protected].
