Senate Bill 2160, also known as House Bill 2186, amends various sections of the Tennessee Code Annotated related to local government. The bill introduces a new provision allowing counties with a metropolitan form of government to either levy a lower tax rate on the retail sale of food and food ingredients or to exempt these sales from local taxation altogether. This new authority is detailed in Section 67-6-702(a)(1)(C) and requires counties to submit a certified copy of the adopted resolution to the Department of Revenue. The changes will take effect on the first calendar day of the month occurring at least sixty days after the department receives the resolution, with the reduced tax rate or exemption applicable only to tax periods beginning on or after October 1, 2026.

Additionally, the bill makes a minor amendment to Section 67-6-705(d) by adding a reference to the new subdivision (C) in Section 67-6-702(a)(1). It also removes certain language from Section 7-1-113, specifically deleting all language between the second comma and the period in subsection (a) and eliminating subdivisions (b)(1)-(3). The act is set to take effect upon becoming law, emphasizing the public welfare.

Statutes affected:
Introduced: 67-6-702(a)(1), 67-6-702, 67-6-705(d), 67-6-705, 7-1-113