Earlier this year, Tennessee Governor Bill Lee announced his plans for a 30-day suspension of state and local grocery sales tax to provide direct financial relief to Tennesseans amid surging inflation nationwide. That sales tax holiday will take place next month in August.
“As Americans see their cost-of-living skyrocket amid historic inflation, suspending the grocery tax is the most effective way to provide direct relief to every Tennessean,” said Gov. Lee.
The temporary suspension of the tax on groceries will start at 12:01 a.m. on Monday, August 1, 2022, and end at 11:59 p.m. on Wednesday, August 31, 2022. During this period, food and food ingredients may be purchased tax free throughout Tennessee. However, food and food ingredients purchased from a micro market or vending machine remain subject to sales tax.
“Food and food ingredients” are defined as liquid, concentrated, solid, frozen, dried, or dehydrated substances that are sold to be ingested or chewed by humans and are consumed for their taste or nutritional value.
Food ingredients do not include alcoholic beverages, tobacco, candy, dietary supplements, and prepared food. The most common example of a dealer selling food and food ingredients is a grocery store. Food and food ingredients are those items otherwise taxed at the 4% state sales tax rate plus the applicable local rate
Tennessee’s traditional sales tax holiday on clothing, school supplies and computers begins at 12:01 a.m. on Friday, July 29, 2022, and ends at 11:59 p.m. on Sunday, July 31, 2022.
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