Tennessee lawmakers pass 3-month grocery tax holiday
Tennesseans won’t have to pay taxes on groceries from August through October.
NASHVILLE, Tenn. (WSMV) – Tennessee families will soon be enjoying $400 million in tax cuts.
The Tennessee General Assembly passed the Tennessee Works Tax Act during its legislative session, making one of the largest tax cuts in Tennessee history, according to a media release. Included in the tax act is a grocery tax holiday from August through October, meaning Tennesseans will not pay tax on food at the grocery store for three months.
WSMV4 spoke with some shoppers Thursday evening about their experience with high grocery prices over the past year.
“Over the past few months, it definitely has been increasing in price. You can tell a thing of eggs is what like five bucks, and a gallon of milk is like four dollars,” said Olivia Buppert.
Many shoppers say they’ve had to change up their shopping habits like choosing the store-brand items over the name brands.
”Any help that we can get would be great because between grocery and gas and everything else going up and up, so just having that little bit of help would be good,” said Donna Spaulding.
Others like Rachel Zhou plans to buy expensive grocery items during the months of August through October.
“I think it’s a good thing for us, especially for students. We don’t have income and we don’t have salaries so it can reduce our living cost so I think it’s a good thing for us,” said Zhou.
The current tax rate for most foods in Tennessee is 4% but is slightly higher for prepared food, candy, dietary supplements, tobacco, and alcohol, at 7%.
The legislation also includes roughly $150 million in tax cuts for small businesses, boosting economic growth in the Volunteer State.
Gov. Bill Lee said he’s proud to put dollars back into the wallets of hardworking Tennesseans.
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