Tennessee Governor Bill Lee announced Thursday in a press release his proposal for a 30-day suspension of state and local grocery sales tax to provide “direct financial relief to Tennesseans amid surging inflation nationwide.”
The state grocery tax is currently 4 percent, with local grocery taxes varying slightly.
“As Americans see their cost-of-living skyrocket amid historic inflation, suspending the grocery tax is the most effective way to provide direct relief to every Tennessean,” Governor Lee said in a statement. “Our state has the ability to put dollars back in the pockets of hardworking Tennesseans, and I thank members of the General Assembly for their continued partnership in maintaining our fiscally conservative approach.”
As Americans see their cost-of-living skyrocket amid historic inflation, suspending the grocery tax is the most effective way to provide direct relief to every Tennessean.
— Gov. Bill Lee (@GovBillLee) March 24, 2022
Lee’s proposal to suspend state and local sales tax on groceries for 30 days will be included in the Fiscal Year 2022-2023 budget amendment, which will be delivered on Tuesday, March 29th, according to the press release. The proposal will need approval from the legislature before taking effect.
On Thursday, Governor Lee met with business leaders in Covington at Naifeh’s Cash Saver “to discuss the tax cut proposal and hear about the local impacts of nationwide economic challenges.”
“Tennesseans have felt the impact of inflation tremendously,” Governor Lee said while speaking at the roundtable discussion in Covington. “Our state is in a strong fiscal position to be able to let Tennesseans keep some of their hard-earned money and do so by suspending the grocery tax for some time.”
Lee’s grocery tax suspension proposal comes after two state Democrats, John Ray Clemmons and Bo Mitchell, called on the governor to place a 90-day moratorium on the state’s collection of gas and diesel taxes.
TN State Representatives John Ray Clemons & Bo Mitchell are calling on Gov. Lee to place a moratorium on the state’s collection of gas & diesel taxes.
Legislators say We need to provide relief for working families in Tennessee@WSMV @JRClemmons @VoteBo pic.twitter.com/x1DxNqEfFL
— Tosin Fakile (@TosinfaksTV) March 8, 2022
When asked if he is considering the idea of a suspension of the state gas and diesel tax, Lee said, “We actually looked at the best way to get relief to the most Tennesseans and there are a number of ways to do that, but we believe the grocery tax is the thing all Tennesseans pay and that is the best strategy to giving relief, so that’s why we chose that direction.”
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Kaitlin Housler is a reporter at The Tennessee Star and The Star News Network.
