HB1530 • 2026

Taxes, Sales

AN ACT to amend Tennessee Code Annotated, Title 57, Chapter 3 and Title 67, Chapter 6, relative to the sales tax on food and food ingredients.

Taxes

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: Warner, Hensley
Last action: 2026-04-08
Official status: Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2026
Effective date: Not listed

Plain English Breakdown

The official source material does not provide specific details about the distribution of remaining tax revenues or the precise impact on education funding.

Tennessee Food Sales Tax Exemption Act

This bill removes state sales tax on most food and food ingredients in Tennessee but keeps taxes on certain items like prepared food, candy, dietary supplements, alcohol, and tobacco.

What This Bill Does

Removes the state sales tax on food and food ingredients for human consumption except for specific items such as prepared food, alcoholic beverages, candy, dietary supplements, and tobacco.

Who It Names or Affects

Tennessee residents who buy food and food ingredients.
Businesses selling food and related products in Tennessee.

Terms To Know

Sales tax: A tax charged by the government on the sale of goods or services.
Local Option Revenue Act: A law that allows local governments to decide whether to apply certain taxes, like sales tax on food.

Limits and Unknowns

The bill does not change the local government's ability to impose their own taxes on food and food ingredients.
It is unclear how much revenue will be lost from removing state sales tax on most food items.

Bill History

2026-04-08 Tennessee General Assembly
Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2026
2026-03-03 Tennessee General Assembly
Refer to Senate Finance, Ways & Means Committee w/ negative recommendation
2026-02-24 Tennessee General Assembly
Placed on Senate FW&M Revenue Subcommittee calendar for 3/3/2026
2026-02-24 Tennessee General Assembly
Refer to Senate F,W&M Revenue Subcommittee
2026-02-05 Tennessee General Assembly
Passed on Second Consideration, refer to Senate Finance, Ways, and Means Committee
2026-02-04 Tennessee General Assembly
Sponsor(s) Added.
2026-02-04 Tennessee General Assembly
Placed behind the budget
2026-02-02 Tennessee General Assembly
Introduced, Passed on First Consideration
2026-02-02 Tennessee General Assembly
Filed for introduction
2026-01-28 Tennessee General Assembly
Placed on s/c cal Finance, Ways, and Means Subcommittee for 2/4/2026
2026-01-26 Tennessee General Assembly
Meeting Canceled
2026-01-21 Tennessee General Assembly
Placed on s/c cal Finance, Ways, and Means Subcommittee for 1/28/2026
2026-01-15 Tennessee General Assembly
Assigned to s/c Finance, Ways, and Means Subcommittee
2026-01-15 Tennessee General Assembly
P2C, ref. to Finance, Ways, and Means Committee
2026-01-14 Tennessee General Assembly
Intro., P1C.
2026-01-13 Tennessee General Assembly
Filed for introduction

Official Summary Text

Present law imposes a state sales and use tax on food retail sales at a 4% tax rate for food and food
ingredients for human consumption. This bill eliminates such tax except for the following items, which must be taxed at the rate levied on the sale of tangible personal property at retail:



Prepared food;


Alcoholic beverages;


Candy;


Dietary Supplements; and


Tobacco.

Further, this bill clarifies that its provisions do not eliminate local government tax rates on food and food ingredients that are taxable under the "1963 Local Option Revenue Act."

Current Bill Text

Read the full stored bill text

SENATE BILL 2347
By Hensley

HOUSE BILL 1530
By Warner
HB1530
010679
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 57,
Chapter 3 and Title 67, Chapter 6, relative to the
sales tax on food and food ingredients.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 67-6-228(a), is amended by deleting
the subsection and substituting instead the following:
(a) Notwithstanding this chapter to the contrary, except as otherwise provided in
subsections (b) and (c), the retail sale of food and food ingredients shall not be taxed.
SECTION 2. Tennessee Code Annotated, Section 67-6-228, is amended by adding the
following language as a new subsection (c):
Notwithstanding § 67-6-702(a) to the contrary, food and food ingredients are
taxable under part 7 of this chapter.
SECTION 3. Tennessee Code Annotated, Section 67-6-103(c)(2), is amended by
deleting the following language:
Revenue generated from one-half percent (0.5%) of the tax rate provided in § 67-6-228
shall continue to be deposited in the state general fund and earmarked for education
purposes in kindergarten through grade twelve (K-12) regardless of whether the tax rate
provided in § 67-6-228 is reduced below six percent (6%).
SECTION 4. Tennessee Code Annotated, Section 67-6-103(u), is amended by deleting
the subsection and substituting instead the following:
(u) Notwithstanding the allocations provided for in subsection (a), there must be
allocated and distributed to the counties and municipalities an amount substantially
equal to the amount that would have been allocated to the counties and municipalities

- 2 - 010679

under subdivision (a)(3) but for the exemption from sales tax applicable to the retail sale
of food and food ingredients. The allocation provided in this subsection (u) must be
based on the reporting of exempt sales of food and food ingredients and any other data
or information the commissioner deems relevant.
SECTION 5. Tennessee Code Annotated, Section 67-6-329(a), is amended by adding
the following as a new, appropriately designated subdivision:
( ) Food and food ingredients;
SECTION 6. Tennessee Code Annotated, Section 67-6-329(a)(18), is amended by
deleting the language "or food and food ingredients".
SECTION 7. Tennessee Code Annotated, Section 67-6-229, is amended by deleting the
language "food and food ingredients or".
SECTION 8. Tennessee Code Annotated, Section 57-3-802(1), is amended by deleting
the language "that derives at least twenty percent (20%) of its sales taxable sales from the retail
sale of food and food ingredients for human consumption taxed at the rate provided in § 67-6-
228(a)" and substituting instead the language "that derives at least twenty percent (20%) of its
sales from the retail sale of food and food ingredients for human consumption".
SECTION 9. Tennessee Code Annotated, Section 57-3-806(d)(1), is amended by
deleting the language "must maintain a minimum of twenty percent (20%) of the licensee's sales
taxable sales from the retail sale of food and food ingredients for human consumption taxed at
the rate provided in § 67-6-228(a)" and substituting instead the language "must maintain a
minimum of twenty percent (20%) of the licensee's sales from the retail sale of food and food
ingredients for human consumption".
SECTION 10. This act takes effect July 1, 2026, the public welfare requiring it.