Taxes, Sales

Plain English Breakdown

The official source does not specify that the study must cover a period of five fiscal years before the bill's enactment, only that it should look at the previous five fiscal years.

Study on Sales Tax Revenue from Food

This bill urges the Tennessee Department of Revenue to study sales tax revenue from non-prepared and prepared food over the past five fiscal years and report findings within 90 days.

What This Bill Does

• Urges the Tennessee Department of Revenue to study the amount of revenue derived during the previous five fiscal years from the sales tax imposed on retail sales of non-prepared food, such as fresh fruits and vegetables, and prepared food.
• Requires a report be submitted within ninety days after finishing the study to the chairs of the finance, ways and means committees in both houses of the Tennessee General Assembly and the office of legislative budget analysis.

Who It Names or Affects

• The Tennessee Department of Revenue
• Committee Chairs in both houses of the Tennessee General Assembly
• Budget Analysts

Terms To Know

Fiscal Year

A period used for budgeting and financial reporting, usually from July 1 to June 30.

Prepared Food

Food that is ready to eat or has been cooked, like restaurant meals.

Limits and Unknowns

• The bill does not specify what actions should be taken based on the report's findings.
• It is unclear if there will be any changes to tax laws after reviewing the study results.

Official Summary Text

Abstract summarizes the bill.

Current Bill Text

SENATE BILL 2135
By Taylor

HOUSE BILL 1778
By Leatherwood
HB1778
010783
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 67,
Chapter 6, relative to sales tax.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. On or before December 31, 2026, the department of revenue is urged to
study the amount of revenue derived during the previous five (5) fiscal years from the tax
imposed by Tennessee Code Annotated, Section 67-6-228, on retail sales of non-prepared
food, such as fruit and vegetables that are fresh, frozen, or canned, and retail sales of prepared
food. Within ninety (90) days from the conclusion of the study, the department shall submit a
report to the chair of the finance, ways and means committee of the senate, the chair of the
committee of the house of representatives having jurisdiction over taxes, and the office of
legislative budget analysis identifying the amounts and providing any findings or
recommendations.
SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.