Tennessee Senate Bill SB1164

Tennessee 2025-2026 Regular Session

• Introduced: 2/6/25

Caption

AN ACT to amend Tennessee Code Annotated, Section 67-6-228, relative to food and food ingredients.

Summary

SB1164 amends Tennessee’s sales tax law for food and food ingredients. Under current law, the retail sale of food and food ingredients for human consumption is taxed at a reduced rate, and this bill keeps that general framework but adds a specific exemption for fruit and vegetables that are fresh, frozen, or canned and intended for human consumption. The bill also states that, except where otherwise provided, food and food ingredients remain taxed at 4% of the sales price. The measure would take effect July 1, 2025. In practical terms, it would remove sales tax from qualifying fruits and vegetables while leaving the reduced tax in place for other food items and food ingredients. The bill amends Tennessee Code Annotated Section 67-6-228, which governs the sales tax treatment of groceries and related food products.

Impact

The bill would directly amend Tennessee’s sales tax statute for food and food ingredients, creating a new exemption for fresh, frozen, or canned fruits and vegetables sold for human consumption. This would reduce the tax burden on consumers purchasing those items and would likely reduce sales tax collections on qualifying produce, while preserving the 4% tax rate for other taxable food and food ingredients not specifically exempted.

Sentiment

No committee transcripts or recorded votes were provided, so there is no documented debate or vote history to gauge legislative sentiment. Based on the bill text alone, the measure appears to be a targeted tax relief proposal focused on groceries, especially produce, with an apparent consumer- and nutrition-oriented policy goal.

Contention

Because no discussion transcripts or votes are available, no specific points of contention can be identified from the record provided. Potential areas of debate, if raised, would likely include the revenue impact on the state, the scope of the produce exemption, and whether the bill should extend relief to other food items beyond fruits and vegetables.