TennesseeMetropolitan counties can lower local taxes on food sales
Metropolitan counties can lower or remove their local tax on food sales by resolution, with the change applying only to tax periods beginning on or after October 1, 2026.
What it does
A county with a metropolitan form of government may set a lower local tax rate on food sales or exempt those sales from the local tax. It must send its resolution to the state revenue department.
Argument forA county could lower or remove its local tax on food, which may reduce the tax shoppers pay on food purchases.
Argument againstA county that lowers or removes its local tax on food could collect less tax revenue, which may leave less money for county services.
More detail
The law allows a county with a metropolitan form of government to set a lower local tax rate on food sales or exempt them from the local tax. This applies to retail sales of food and food ingredients for people to eat within the county. The county must send the Department of Revenue a certified copy of its resolution. The lower rate or exemption takes effect on the first day of a month at least 60 days after the department receives the certified resolution. It applies only to tax periods beginning on or after October 1, 2026.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- May 26Pub. Ch. 1014Latest
- May 26Effective date(s) 05/19/2026
- May 19Signed by Governor Bill Lee.Became Law
- May 7Transmitted to Governor for his action.To Governor
- May 5Signed by Senate SpeakerMajor
- Apr 30Signed by H. SpeakerMajor
- Apr 20Enrolled; ready for sig. of H. Speaker.Minor
- Apr 15Senate substituted House Bill for companion Senate Bill.Major
- Vote recorded FLOOR VOTE: Third Consideration 4/15/2026 Passed. Result: pass.Upper
- Apr 15Passed Senate, Ayes 27, Nays 5, PNV 1Passed Senate
- Apr 9Received from House, Passed on First ConsiderationMinor
- Apr 6Passed H., Ayes 76, Nays 16, PNV 2Passed House
- Vote recorded FLOOR VOTE: REGULAR CALENDAR PASSAGE ON THIRD CONSIDERATION 4/6/2026 Passed. Result: pass.Lower
- Apr 6Engrossed; ready for transmission to Sen.Minor
- Mar 30Objected to on Consent Calendar.
- Mar 30H. Placed on Regular Calendar for 4/6/2026
- Mar 26H. Placed on Consent Calendar for 3/30/2026
- Vote recorded HOUSE CALENDAR & RULES COMMITTEE: H. Placed on Consent Calendar 3/26/2026. Result: fail.Lower
- Mar 25Placed on cal. Calendar & Rules Committee for 3/26/2026
- Mar 24Rec. for pass; ref to Calendar & Rules CommitteeMinor
- Vote recorded HOUSE FINANCE, WAYS, AND MEANS COMMITTEE: Rec. for pass; ref to Calendar & Rules Committee 3/24/2026 Passed. Result: pass.Lower
- Mar 18Rec. for pass by s/c ref. to Finance, Ways, and Means CommitteeMinor
- Vote recorded HOUSE FINANCE, WAYS, AND MEANS SUBCOMMITTEE: Rec. for pass by s/c ref. to Finance, Ways, and Means Committee 3/18/2026 Passed. Result: pass.Lower
- Mar 18Placed on cal. Finance, Ways, and Means Committee for 3/24/2026
- Mar 11Rec. for pass; ref to Finance, Ways, and Means CommitteeMinor
- Vote recorded HOUSE STATE & LOCAL GOVERNMENT COMMITTEE: Rec. for pass; ref to Finance, Ways, and Means Committee 3/11/2026 Passed. Result: pass.Lower
- Mar 11Assigned to s/c Finance, Ways, and Means SubcommitteeMinor
- Mar 11Placed on s/c cal Finance, Ways, and Means Subcommittee for 3/18/2026
- Mar 4Rec. for pass by s/c ref. to State & Local Government CommitteeMinor
- Vote recorded HOUSE CITIES & COUNTIES SUBCOMMITTEE: Rec. for pass by s/c ref. to State & Local Government Committee 3/4/2026 Passed. Result: pass.Lower
- Mar 4Placed on cal. State & Local Government Committee for 3/11/2026
- Feb 25Placed on s/c cal Cities & Counties Subcommittee for 3/4/2026
- Feb 5P2C, ref. to State & Local Government CommitteeMinor
- Feb 5Assigned to s/c Cities & Counties SubcommitteeMinor
- Feb 4Intro., P1C.Minor
- Feb 2Filed for introductionIntroduced
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