Tennessee House Bill HB1778

Tennessee 2025-2026 Regular Session

• Introduced: 1/20/26
• Refer: 1/22/26

Caption

AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 6, relative to sales tax.

Summary

HB1778 does not change Tennessee’s sales tax rates or exempt any goods from tax. Instead, it directs the Department of Revenue to study the amount of revenue collected over the previous five fiscal years from the sales tax imposed on retail sales of non-prepared food and prepared food under Tennessee Code Annotated § 67-6-228. The study is to be completed by December 31, 2026. After the study is finished, the department must submit a report within 90 days to the chairs of the relevant Senate and House tax committees and to the Office of Legislative Budget Analysis. The report must identify the revenue amounts and may include findings and recommendations. The bill is a reporting and analysis measure, aimed at informing future tax policy rather than immediately changing it.

Impact

The bill has no direct effect on tax liability, exemptions, or collection procedures in current law. Its practical impact is to require the Department of Revenue to compile historical revenue data on sales tax from prepared and non-prepared food sales and to provide that information to legislative fiscal and tax committees. The measure may influence future amendments to Tennessee’s sales tax statutes in Title 67, Chapter 6, especially any policy discussions about taxing groceries, prepared foods, or food-related exemptions.

Sentiment

The available record shows no committee debate, votes, or recorded opposition, so there is no documented controversy in the materials provided. Based on the text alone, the bill appears neutral and informational, with a generally procedural purpose that is likely to be viewed as low-conflict because it only requests a study and report. The absence of voting history or transcript discussion suggests no clear public sentiment can be inferred beyond routine legislative interest in tax data.

Contention

No specific points of contention are documented in the provided materials. If concerns were to arise, they would likely center on whether the study could be used to justify changes to the tax treatment of groceries or prepared foods, and on the administrative burden of producing the report. However, neither supporters nor opponents are identified in the available record, and the bill itself does not propose any tax increase, reduction, or exemption change.