Eliminating the grocery tax? Bill to do so stalls in Tennessee

NASHVILLE, Tenn. (WTVF) — We know the cost of groceries and everyday items is one of the top things on your mind.

That's why it's important to us to track what's happening with a bill in the state legislature that would eliminate the sales tax you pay at the grocery store.

"Families are suffering under the burden of increased costs for necessities and working Tennesseans need to put food on the table to feed their children," said Rep. Aftyn Behn, D-Nashville, defending her bill in front of a House subcommittee this week.

But Republicans in the House seized upon a part of the bill that they said amounted to a tax on small businesses to pay for the grocery tax break.

"The bill creates a business enterprise tax act, which raises taxes for our small businesses here in Tennessee to the tune of $800 million," said Rep. Johnny Garrett (R-Goodlettsville).

Behn disputes that figure. She said the money would come from large corporations that aren't paying their fair share in taxes.

"Right now, with billion-dollar corporations paying nothing in taxes in this state, the bottom 20% of income earners pay a higher percentage of their income than the top 1%," Behn said. "The Tennessee tax burden falls disproportionately on working families and not the wealthy or billion-dollar corporations."

But Republicans removed the portion of the bill paying for the tax break with the business tax, leaving the tax break, for now, unfunded.

With the governor's amended budget still to come, the bill was put behind the budget, which means it's on hold to see if there's money allotted for it.