Tennessee to Decrease Sales Tax on Food
- Sales Tax News
- May 9, 2012 | Will Frei
UPDATE: June 4, 2012 Governor Bill Haslam signed the sales tax reduction bill into law.
UPDATE: The Tennessee Legislature passed HB 8763/SB3763 and the sales tax rate on food and food products will reduce to 5.25% effective July 1, 2012.
Tennessee stands poised to lower their sales tax rate on non-prepared food items.
The Tennessee House Bill 3763 will lower the sales tax rate on food and food ingredients* from 5.5% to 5.25%, effective July 1, 2012. The Tennessee Department of Revenue clarifies that "Prepared food, dietary supplements, candy, alcoholic beverages and tobacco . . ." will still be taxed at the rate of 7%.
Applicable local taxes will still apply at the same rates.
*Link to Amendment 1 to HB3761, which provides the most up-to-date bill information.