Plain English Breakdown
The official source material does not provide information about whether other food items will continue to be taxed at a different rate or if local governments have plans to compensate for lost revenue from reduced sales tax on fruits and vegetables.
Exemption of Fruit and Vegetable Sales Tax
This bill removes sales tax on fresh, frozen, and canned fruits and vegetables for human consumption in Tennessee.
What This Bill Does
- Removes the retail sales tax on fresh, frozen, and canned fruits and vegetables for human consumption.
- Updates Section 67-6-228 of Tennessee Code Annotated to reflect these changes.
Who It Names or Affects
- Shoppers who buy fruits and vegetables at retail stores will pay less in taxes on those purchases.
- Retailers selling fresh, frozen, or canned fruits and vegetables will no longer collect sales tax on these items.
Terms To Know
- Sales Tax
- A tax charged by retailers to customers based on the price of goods purchased.
- Retail Sale
- The sale of goods directly to consumers for personal use, not for resale or manufacturing purposes.
Limits and Unknowns
- Does not specify if other food items will be taxed differently in the future.
- The bill does not address how local governments will compensate for lost revenue from reduced sales tax on fruits and vegetables.