Rutherford County, TN - Tennessee is on the path to potentially eliminating its grocery tax, thanks to the efforts of Representative Aftyn Behn and Senator Charlane Oliver who champion HB 2043/SB 1934. This bill aims to stop the taxation of groceries by both state and local governments, a move that could significantly impact Rutherford County residents and those in the surrounding areas.

 

Following approval by the House Government Operations Committee, the bill will undergo scrutiny by the House Finance Subcommittee and later presented in the Senate Finance, Ways, and Means Revenue Subcommittee. Currently, Tennessee imposes a 4% sales tax on food, with the potential for additional local taxes of up to 2.75%.

 

The proposed legislation intends to provide financial relief to working families by exempting groceries from taxation, a much-needed measure considering the high cost of living in Rutherford County and its surrounding areas. To address potential revenue losses, lawmakers plan to pair the grocery tax repeal with corporate tax reforms, focusing on closing loopholes that primarily benefit large corporations. This move is anticipated to alleviate financial burdens on residents and ensure a fairer tax system for all.