House Bill 1842, also known as Senate Bill 2314, amends various sections of the Tennessee Code Annotated related to the taxation of food and food ingredients. The bill establishes that the retail sale of food and food ingredients shall not be taxed, while also introducing a new provision that allows for the taxation of food and food ingredients under part 7 of the chapter. Additionally, it modifies the language regarding the revenue generated from a portion of the tax rate, ensuring that funds earmarked for education purposes in K-12 are maintained regardless of any tax rate reductions.

The bill further clarifies the requirements for businesses regarding their sales from food and food ingredients. It removes specific references to the tax rate in the context of sales and instead focuses on the percentage of sales derived from food and food ingredients for human consumption. The changes aim to streamline the language and ensure consistency across the relevant sections of the law. The act is set to take effect on July 1, 2026.

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