Senate Bill 2277, also known as House Bill 2437, amends Tennessee Code Annotated, Title 67, Chapter 6, concerning the taxation of food and food ingredients. The bill modifies Section 67-6-228 by deleting the existing subsection (a) and replacing it with new provisions. Under the new language, the retail sale of food and food ingredients for human consumption will be taxed at a rate of four percent (4%) of the sales price, with an exception for generic food products. These generic food products, defined as those produced by a third party under the brand of a grocery wholesaler or retailer, will be exempt from this tax.

The act is set to take effect on July 1, 2026, ensuring that the changes will be implemented in a timely manner to benefit consumers and retailers alike. This legislation aims to clarify the tax structure surrounding food sales in Tennessee, particularly focusing on the treatment of generic food products in the marketplace.

Statutes affected:
Introduced: 67-6-228