Taxes, Sales

Plain English Breakdown

The official source material does not provide specific details on the exact nature of prepared foods or any limitations beyond those stated.

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 submit a report with findings and recommendations.

What This Bill Does

• Urges the Tennessee Department of Revenue to look at how much money was made from selling taxes on different types of food over the last five fiscal years.
• Requires the department to study both non-prepared foods like fresh fruits, vegetables, or canned goods that need preparation before eating and prepared foods that are ready to eat or heat up.
• Asks for a report with details about the sales tax revenue from these categories and any suggestions based on their findings.

Who It Names or Affects

• The Tennessee Department of Revenue
• People who buy food in Tennessee

Terms To Know

Sales Tax

A tax that is added to the price of goods and services when they are sold.

Non-prepared Food

Food items like fresh fruits, vegetables, or canned goods that need preparation before eating.

Limits and Unknowns

• The bill does not change the current sales tax rates on food.
• It only asks for a study and report; it doesn't make any new laws about taxes.

Official Summary Text

Abstract summarizes the bill.

Current Bill Text

HOUSE BILL 1778
By Leatherwood

SENATE BILL 2135
By Taylor
SB2135
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.