Bill to eliminate grocery tax and raise taxes for big corporations in TN moves forward in legislature

NASHVILLE, Tenn. (WTVF) — Legislation to eliminate the grocery sales tax in Tennessee making its way through the legislature.

The bill from Democratic lawmakers Aftyn Behn and Charlane Oliver passed a House Committee yesterday and goes before a Senate subcommittee today. The bill would get rid of the grocery tax we all pay. To make up the money, the state would begin a new tax on businesses.

This new tax would be three-quarters of a percent and would affect about 33% of all businesses in Tennessee. It would only be paid by businesses with gross receipts of $250,000 or more.

“It is outrageous that in Tennessee some billion-dollar corporations are paying a lower tax bill than a single mother who works two jobs. Working families and small businesses are the backbone of this economy and they deserve a legislature that works — as hard as they do — to lower costs and help them build a good life.” said Representative Charlane Oliver.

Tennessee is one of only 13 states that taxes groceries. The bill's sponsors say the tax on groceries is one of the highest in the nation and it hits lower-income families the hardest.

The sales tax rate on food sits at 4% and local jurisdictions can add up to 2.75% in local sales taxes.

“Instead of focusing on a bipartisan solution to inflation, Gov. Lee announced he’s giving corporations yet another tax break despite wide support for eliminating the grocery tax. It’s time to shift the tax burden off of us and onto mega-corporations who don’t pay what they owe," said Representative Behn.

If this bill passes, the tax would be eliminated on July 1st. We'll let you know what happens as it moves forward to the Senate.

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