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Tennessee to Decrease Sales Tax on Food


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.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Will Frei
Avalara Author Will Frei
Will Frei covers sales tax news including best practices, legislation and sales tax technology. He is the Social Media Manager at Avalara.