KLS Keeping Law Simple Legislation in plain English

Straight-ahead summaries built from the official bill text. We keep the source links front and center and leave the decision up to you.

Back to Tennessee

HB2437 • 2026

Taxes, Sales

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

Taxes
Active

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

Sponsor
McKenzie, Briggs
Last action
2026-04-09
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 does not specify the continued taxation rate for non-generic food items, so that claim was removed.

Food Tax Exemption Act

This bill changes Tennessee's tax laws to exempt generic food products from sales taxes.

What This Bill Does

  • Changes the law so that generic food products are not taxed when sold in stores.
  • Defines 'generic food products' as foods made by a third party for grocery wholesalers or retailers under their brand name.

Who It Names or Affects

  • Grocery store customers who buy generic food items will pay less tax on those purchases.
  • Retailers selling generic food products will no longer have to collect sales taxes for these items.

Terms To Know

generic food products
Food made by a third party but sold under the brand of a grocery wholesaler or retailer.

Limits and Unknowns

  • The bill does not specify which generic food items are included in this exemption.
  • It is unclear how much money will be lost from tax revenue due to this change.

Bill History

  1. 2026-04-09 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2026

  2. 2026-03-17 Tennessee General Assembly

    Refer to Senate F,W&M Committee w/ negative recommendation, as amended

  3. 2026-03-11 Tennessee General Assembly

    Placed behind the budget

  4. 2026-03-10 Tennessee General Assembly

    Placed on Senate FW&M Revenue Subcommittee calendar for 3/17/2026

  5. 2026-03-04 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 3/11/2026

  6. 2026-03-04 Tennessee General Assembly

    Action Def. in s/c Finance, Ways, and Means Subcommittee to 3/11/2026

  7. 2026-02-25 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 3/4/2026

  8. 2026-02-24 Tennessee General Assembly

    Refer to Senate F,W&M Revenue Subcommittee

  9. 2026-02-05 Tennessee General Assembly

    Assigned to s/c Finance, Ways, and Means Subcommittee

  10. 2026-02-05 Tennessee General Assembly

    P2C, ref. to Finance, Ways, and Means Committee

  11. 2026-02-05 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate Finance, Ways, and Means Committee

  12. 2026-02-04 Tennessee General Assembly

    Intro., P1C.

  13. 2026-02-03 Tennessee General Assembly

    Filed for introduction

  14. 2026-02-02 Tennessee General Assembly

    Introduced, Passed on First Consideration

  15. 2026-02-02 Tennessee General Assembly

    Filed for introduction

Official Summary Text

Abstract summarizes the bill.

Current Bill Text

Read the full stored bill text 
SENATE BILL 2277
By Briggs

HOUSE BILL 2437
By McKenzie
HB2437
012518
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 67,
Chapter 6, relative to 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, is amended by deleting
subsection (a) and substituting instead the following:
(a)
(1) Notwithstanding this part to the contrary and except as otherwise
provided in subdivision (a)(2) and subsection (b), the retail sale of food and food
ingredients for human consumption is taxed at the rate of four percent (4%) of
the sales price.
(2) Notwithstanding this part to the contrary, the retail sale of generic
food products for human consumption is exempt from the tax levied by this
chapter. As used in this subdivision (a)(2), "generic food products" means food
products for which a grocery wholesaler or grocery retailer contracts with a third
party to produce on behalf of and under the brand of the grocery wholesaler or
grocery retailer.
SECTION 2. This act takes effect July 1, 2026, the public welfare requiring it.