Tennessee Legislature to consider ending grocery tax in 2025 session
Could the Tennessee state sales tax on groceries be going away?
That’s what a new bill is looking to do.
Sen. Watson said, “Those all are competing tax reduction bills and the food taxes is in that group, and the legislature will have to determine: One, can we afford it? And two, which of those tax reductions would have the greatest benefit?”
According to the most recent data from the U-S Census Bureau, Tennesseans on average pay nearly $1200 dollars a month in groceries.
This means on average, residents could expect to save nearly $50 on average per month.
On the flip side, the state would forgo a significant amount of tax revenue.
However, recent grocery tax holidays according to Senator Watson have shown this could spur other economic activity.
Sen. Watson said, “It kept more money in people’s pockets, and when you’re a sales tax based state, which we are, the more money you keep in your citizen’s pockets they spend, and the more money they spend, obviously that generates more tax revenues.”