Gov. Bill Lee proposes three-month grocery tax holiday for Tennessee

Posted at 6:11 AM, Feb 09, 2023

NASHVILLE, Tenn. (WTVF) — Gov. Bill Lee announced Tennessee might see some relief at the grocery store soon with another grocery tax holiday.

Last summer, the state saw a month-long grocery tax holiday. Now, the governor is proposing a three-month-long tax holiday. He made the announcement during his State of the State address Monday.

If similar to the last grocery tax holiday, it would apply to nearly all foods. Wine, beer, and cigarettes would not be included.

The USDA predicts the cost of groceries to increase by at least 8%\ in 2023.

"Last August, we gave Tennessee families a one-month break from grocery taxes, to provide relief amid nationwide inflation. We should do that again this year, but let’s extend it to three consecutive months," said Governor Lee.

Currently, groceries have about a 5% tax, which is a reduced rate from the seven percent sales tax on other items.