NASHVILLE, Tenn. (WTVF) — When it comes to saving you money at the grocery store, both Tennessee Republicans and Democrats have a plan to get rid of the 4% tax on food and food ingredients.
Tennessee is one of just 10 states in the U.S. that still has a grocery sales tax. Yet, neither party's proposal appears likely to pass this session.
"I fully support the repeal of the grocery tax," said State Rep. William Lamberth, R-Portland, who also serves as House Majority Leader.
"They don’t have a way to pay for it, and we do," said Rep. Aftyn Behn, D-Nashville.
Democrat version sent to "summer study."
Rep. Behn's version cuts both the state and local grocery sales tax, but replaces it with new revenue by closing a corporate tax loophole.
"60% of companies are not paying any in excise tax," Behn explained to NewsChannel 5.
But Wednesday, it was essentially killed for the year, just with a nicer-sounding destination.
"HB002 goes to Summer Study," said Rep. Ryan Williams, R-Cookeville.
"I think we need to have more discussion on this, I think more parties need to be involved," said Rep. Kip Capley, R-Summertown.
"You know, I expected it," Behn told us after the vote.
The Nashville Democrat says this development won't deter her and vowed to make this a key issue of the 2026 Gubernatorial campaign.
"I think we can get it done by 2027," said Behn.
Republican version still on ice
Tennessee Republicans have their own version of ending the grocery sales tax, although interestingly enough, it still hasn't appeared in front of a single House committee or subcommittee.
The Tennessee Senate heard their bill in the Finance Subcommittee earlier this week and gave it a negative recommendation, although that's common for bills with a big price tag that isn't included in the Governor's budget.
"I don’t know what that’s going to look like this year, but I know myself and Rep. Davis and Chairman Watson are going to continue to work to cut the grocery tax — either a little bit or all of it together," said State Rep. Lamberth, who is a co-sponsor of the House version.
The Republican proposal cuts the state's portion of the grocery sales tax entirely, but it comes with a hefty price tag — more than $800 million each year.
"I’d like to make sure we get rid of it," Lamberth told NewsChannel 5.
Crucially, Gov. Bill Lee did not include a grocery sales tax cut in his initial proposed budget to the legislature this year. He could include it in his upcoming budget amendment.
"My hope is we can absolutely get there to cut some of it," said Lamberth.
Those negotiations are still ongoing. But, simply put, if the Governor can't be swayed, higher taxes on food at the grocery store are here to stay.
Like Rep. Behn, Lamberth indicated a willingness to keep working on this bill, even if it doesn't come to fruition this year.
Do you have more information about this story? You can email me at Chris.Davis@NewsChannel5.com.
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-Lelan Statom
