Taxes, Exemption and Credits

Plain English Breakdown

The candidate explanation's plain language title was slightly misleading as it implied a broader scope than what is actually proposed.

Food Sales Tax Holiday

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

What This Bill Does

• Adds an exemption to the sales tax law for food and food ingredients sold between midnight and 11:59 PM on the fifth day of each month.
• Does not exempt sales from micro markets or vending machines during this period.

Who It Names or Affects

• Shoppers who buy food and ingredients on the fifth day of every month will pay less in taxes.
• Retail stores selling food and ingredients may see an increase in sales on the fifth day of each month.

Terms To Know

Sales Tax Holiday

A period when certain items are not taxed to encourage spending or help people save money.

Micro Market

An automated vending system that sells a variety of products, often found in workplaces.

Limits and Unknowns

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

HOUSE BILL 1722
By Brooks

SENATE BILL 1695
By Akbari
SB1695
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.