House Bill 1778, sponsored by Leatherwood, mandates the Tennessee Department of Revenue to conduct a study on the revenue generated from the sales tax on non-prepared food, such as fresh, frozen, or canned fruits and vegetables, as well as prepared food. This study is to be completed by December 31, 2026, and the department is required to submit a report within ninety days of the study's conclusion. The report will be directed to key legislative figures, including the chairs of the finance committees in both the Senate and House of Representatives, as well as the office of legislative budget analysis, detailing the revenue amounts and any findings or recommendations.

The bill emphasizes the importance of understanding the financial implications of the sales tax on food items, aiming to provide insights that could inform future legislative decisions. It is set to take effect immediately upon becoming law, highlighting its urgency in addressing the sales tax issue.