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Tennessee Governor Bill Haslam Highlights Cut in Grocery Tax provided by IMPROVE Act

IMPROVE Act creates the Largest Tax Cut in Tennessee History

Tennessee State GovernmentElizabethton, TN – Tennessee Governor Bill Haslam today highlighted the 20 percent reduction to the grocery tax included in the newly implemented IMPROVE Act by visiting local grocery stores in Elizabethton and Mount Juliet.

Effective July 1st, 2017 the IMPROVE Act, “Improving Manufacturing, Public Roads and Opportunities for a Vibrant Economy,” creates the largest tax cut in state history while delivering a safe, reliable and debt-free transportation network.

Tennessee Governor Bill Haslam.
Tennessee Governor Bill Haslam.

The IMPROVE Act cuts $125 million in sales tax on groceries by reducing the tax rate from 5 to 4 percent and is a net tax savings for average Tennessee families – a fact confirmed by the Americans for Tax Reform, an organization that opposes all tax increases as a matter of principle.

“We’ve reduced the cost of government, and we’re returning those dollars in tax cuts. The sales tax on food is a tax that all Tennesseans pay, and the IMPROVE Act is a conservative and responsible plan that puts dollars back into the pockets of all Tennesseans by cutting the grocery tax and directly addresses how we fund our roads and bridges for the first time in 30 years,” Haslam said.

The IMPROVE Act cuts business taxes for manufacturers by $113 million and has already helped attract manufacturing jobs to the state. In May, Nokian Tyres cited IMPROVE as a major factor in its decision to invest $360 million in a new tire manufacturing facility in Dayton that is expected to create 400 new jobs.

When fully executed, IMPROVE will cut more than $500 million in taxes annually, bringing the total amount of tax cuts by the Haslam administration to more than $800 million. Since 2011, the governor has worked with the General Assembly to cut more than $500 million in on-going expenses out of the state budget, and Tennessee continues to have the lowest taxes in the nation as a percentage of personal income.

Senate Majority Leader Mark Norris (R-Collierville) and Reps. Barry Doss (R-Leoma) and Bill Dunn (R-Knoxville) carried the legislation through the legislative process.


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