Taxes, Exemption and Credits

Plain English Breakdown

The official source material does not provide details on how retailers will be informed about which items are exempt or if there will be additional costs for administering this change in tax law.

Tennessee Food Tax Exemption for WIC Vouchers

This bill removes state sales and use tax on food items that are eligible for vouchers under the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC).

What This Bill Does

• Exempts from Tennessee's state sales and use tax the retail sale of food and food ingredients that can be purchased with WIC vouchers.
• Adds a new section to Tennessee Code Annotated, Title 67, Chapter 6, Part 3, which outlines this exemption.

Who It Names or Affects

• People who receive WIC vouchers and use them to buy food and ingredients at stores.
• Retailers selling food and ingredients to customers using WIC vouchers.

Terms To Know

WIC

Special Supplemental Nutrition Program for Women, Infants, and Children, a federal program that provides nutrition assistance to low-income pregnant women, new mothers, infants, and young children.

Sales tax

A tax charged by the government on the sale of goods and services.

Limits and Unknowns

• The bill does not specify how retailers will be informed about which items are exempt.
• It is unclear if there will be any additional costs for administering this change in tax law.
• The exact impact on state and local government revenues is uncertain but expected to result in a net loss.

Official Summary Text

Abstract summarizes the bill.

Current Bill Text

HOUSE BILL 1792
By Fritts

SENATE BILL 1837
By Hensley
SB1837
009223
- 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, Title 67, Chapter 6, Part 3, is amended by
adding the following as a new section:
67-6-359.
There is exempt from the state tax imposed by this chapter the retail sale of food
and food ingredients that are voucher-eligible under the Special Supplemental Food
Program for Women, Infants, and Children (42 U.S.C. § 1786), and any subsequent
federal legislation. Unless exempted pursuant to § 67-6-702(a)(1)(B) and
notwithstanding § 67-6-702(a) to the contrary, such food and food ingredients remain
taxable under part 7 of this chapter.
SECTION 2. This act takes effect July 1, 2026, the public welfare requiring it.