House Republicans Continue Push To Lower Sales Tax On Groceries

A bill which seeks to lower the sales tax on groceries from 5.25% to a flat 5.00% passed out of the House Finance, Ways and Means Subcommittee this week with unanimous support from Republican lawmakers. House Bill 193, which is part of Governor Bill Haslam’s legislative agenda for the year, will take effect beginning July 1, 2013.

This year’s legislation builds on the success of a law adopted by Republicans in 2012 that lowered the sales tax on food from 5.5% to 5.25%. In total, the sales tax reduction this year will provide Tennessee taxpayers with over $25 million in tax relief.

The legislation will be voted on in the full House Agriculture and Natural Resources Committee on Tuesday, March 26th, where it is expected to again pass easily.