House Bill 2007, also known as the "End the Grocery Tax Act," proposes significant changes to the taxation of food and food ingredients in Tennessee. The bill amends Tennessee Code Annotated, Section 67-6-228(a), to exempt the retail sale of food and food ingredients from sales tax. Additionally, it removes the requirement that revenue generated from a portion of the tax rate be earmarked for K-12 education, thereby allowing for a complete exemption from sales tax on food items. The bill also introduces new provisions for the allocation of funds to counties and municipalities based on the reporting of exempt sales.

Further amendments include the removal of specific language related to food and food ingredients in various sections of the law, streamlining the definitions and requirements associated with sales tax. For instance, the bill modifies the criteria for businesses to qualify for certain sales tax exemptions, ensuring that the focus remains on the retail sale of food and food ingredients for human consumption. The act is set to take effect on July 1, 2026, contingent upon public welfare considerations.

Statutes affected:
Introduced: 67-6-228(a), 67-6-228, 67-6-103(c)(2), 67-6-103, 67-6-103(u), 67-6-329(a), 67-6-329, 67-6-329(a)(18), 67-6-229, 67-6-702(a), 67-6-702, 67-6-705, 57-3-802(1), 57-3-802, 57-3-806(d)(1), 57-3-806