TN HB0002

Eliminates Tennessee's state sales tax on retail sales of food and food ingredients, effective July 1, 2025.

Removes the existing 0.5% grocery tax earmark that was dedicated to K-12 education funding in the state general fund.

Requires the state to continue distributing to counties and municipalities an amount equal to what they would have received from grocery sales tax revenue before the exemption.

Updates alcohol licensing requirements for retailers to measure the 20% food sales threshold based on total sales rather than taxable sales, reflecting the new tax-exempt status of groceries.