Taxes, Exemption and Credits

Plain English Breakdown

Checked against official source text during the last sync.

Food Sales Tax Holiday

This bill creates a tax holiday for food and food ingredients sold on the fifth day of every month in Tennessee.

What This Bill Does

• Adds a new section to Tennessee law that exempts certain food sales from taxes.
• The exemption applies only to sales made between midnight and just before midnight on the fifth day of each month.
• Does not include sales from micro markets or vending machines in this tax holiday.

Who It Names or Affects

• People who buy food and ingredients at retail stores during the specified time.
• Retail businesses that sell food and ingredients, excluding those using micro markets or vending machines.

Terms To Know

Micro market

A small-scale convenience store typically found in workplaces or other locations.

Vending machine

An automated machine that sells products like snacks, drinks, and other items.

Limits and Unknowns

• The bill does not specify how much money will be lost due to the tax exemption.
• It is unclear if there are any specific requirements for retailers to participate in this tax holiday.

Official Summary Text

Present law authorizes certain sales tax holidays. This bill adds to the list of such sales tax holidays the
retail sale of food and food ingredients if sold between 12:01 a.m. and 11:59 p.m. on the
5
th day of any month.
However, such sales tax holiday
does not exempt sales from a micro market

or
a
vending machine or device.

Current Bill Text

SENATE BILL 1695
By Akbari

HOUSE BILL 1722
By Brooks
HB1722
009855
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 67,
Chapter 6, relative to the tax on the retail sale of
food and food ingredients.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 67-6-393, is amended by adding the
following as a new subsection:
(i) There is exempt from the tax imposed by this chapter the retail sale of food
and food ingredients, as defined in § 67-6-102, if sold between 12:01 a.m. and 11:59
p.m. on the fifth day of any month. This subsection (i) does not exempt sales from a
micro market, as defined in § 67-6-102, or vending machine or device.
SECTION 2. This act takes effect July 1, 2026, the public welfare requiring it.