NASHVILLE, Tenn. (WTVF) — With Gov. Bill Lee's amended budget out, bills to eliminate the grocery sales tax don't appear to have financial support.
Groceries are taxed at 4% in Tennessee. The state is one of just 10 in the U.S. that still has a grocery sales tax.
Rep. Aftyn Behn's, D-Nashville, version of appealing the grocery sales tax went to summer study. Republicans had their own version. House Majority Leader Rep. William Lamberth, R-Portland, co-sponsored the bill. He said last week he hope there would be some kind of cut.
The Republican proposal cuts the state's portion of the grocery sales tax entirely, but it comes with a hefty price tag — more than $800 million each year.
No cuts were made in the amended budget. Lee did not include a grocery sales tax cut in his initial proposed budget to the legislature this year.
"I think there's not much good news for sure," Sen. Jeff Yarbro, D-Nashville, said. "We should cut the tax on groceries. When the state spends all its extra resources on tax cuts for corporations, you can't figure out a way to do both those things at once. I think the legislature has the wrong priorities there."
We have reached out to Rep. Lamberth for his perspective on this initiative not looking hopeful this legislative cycle.
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