Tennessee Senate Bill SB2277

Tennessee 2025-2026 Regular Session

• Introduced: 2/2/26

Caption

AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 6, relative to food and food ingredients.

Summary

SB2277 would amend Tennessee’s sales tax law for food and food ingredients. Under current law, the bill would set the retail sale of food and food ingredients for human consumption at a 4% sales tax rate, while creating a new exemption for “generic food products” sold for human consumption. The bill defines generic food products as items produced by a third party on behalf of, and under the brand of, a grocery wholesaler or grocery retailer. The measure is structured as an amendment to Tennessee Code Annotated, Title 67, Chapter 6, and would take effect July 1, 2026. In practical terms, it would change how certain grocery-branded private-label foods are taxed, distinguishing them from other food and food ingredient sales.

Impact

The bill would revise Tennessee’s sales tax treatment of groceries by carving out a new exemption for private-label or store-brand food products while leaving the 4% tax rate in place for other food and food ingredients for human consumption. It would amend Tennessee Code Annotated § 67-6-228 and affect grocery wholesalers, grocery retailers, third-party manufacturers, and consumers purchasing branded food products sold under a retailer’s or wholesaler’s name.

Sentiment

No committee transcripts or recorded votes were provided, so there is no direct evidence of legislative debate or formal support/opposition in the available record. Based on the text alone, the bill appears to be a targeted tax policy change focused on grocery pricing and private-label products rather than a broad overhaul of food taxation.

Contention

The main potential point of contention is the preferential tax treatment for “generic food products,” which could be viewed as benefiting grocery retailers and wholesalers that sell private-label goods while leaving other food products subject to tax. Questions may also arise over how the exemption would be administered, how “generic food products” would be interpreted in practice, and whether the distinction between private-label and other food items creates competitive or fairness concerns.