Tennessee Governor Bill Haslam signs Food Tax Reduction Bill at Monroe County Grocery

Legislation last step in two-year effort to cut state portion of sales tax on groceries to 5 percent

Vonore, TN – Tennessee Governor Bill Haslam today traveled to Monroe County to sign legislation to reduce the state portion of the sales tax on groceries from 5.25 percent to 5 percent.

Haslam held a ceremonial bill signing at Sloan’s Grocery in Vonore, Tennessee.

In 2012, the General Assembly passed and the governor signed the first step in reducing the state portion of the sales tax on groceries, lowering the rate from 5.5 percent to 5.25 percent.

“We’re lowering taxes and balancing the state budget by managing conservatively, making strategic investments in our priorities and finding new ways to make government more efficient and effective,” Haslam said. “The sales tax on food impacts all Tennesseans, and I applaud the General Assembly for passing this important piece of legislation this year.”

The bill, SB 199/HB 193, was introduced by the governor and was one of two tax cuts passed by the legislature and signed by Haslam this year as the state continues its work toward providing the best customer service at the lowest possible cost to taxpayers.

Senate Majority Leader Mark Norris (R-Collierville), House Majority Leader Gerald McCormick (R-Chattanooga) and state Rep. Ryan Haynes (R-Knoxville) sponsored the bill.

Haslam included $23 million in the FY 2013-2014 state budget to fund the legislation. The legislation goes into effect July 1st, 2013.

The reduced tax rate does not apply to prepared foods such as a meal at a restaurant, candy, alcoholic beverages or tobacco.