Tennessee General Assembly
9:35 am
Thu April 19, 2012

Bill to reduce TN sales tax on food fails

A proposal to make lowering the Tennessee state sales tax on groceries contingent on whether there's a surplus in revenue has failed.  The measure failed to get a majority vote in the Senate Finance Committee Wednesday. The companion bill is awaiting a vote in a House subcommittee.  Under the legislation, half of the surplus would go toward student assistance awards.  Governor Bill Haslam plans to trim the sales tax on groceries by .25%, down to 5.25%, in the budget year beginning July 1, which is projected to cost $21 million.  Haslam has said he wants to drop the sales tax on groceries to 5% in the next budget year.