TN HB0021

Eliminates state sales tax on retail sales of food and food ingredients, effective July 1, 2025

Food and food ingredients remain subject to local option sales taxes under Part 7 of the tax code

Removes the 0.5% sales tax earmark that was designated for K-12 education funding from food sales

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

Updates grocery store wine license requirements to base the 20% food sales threshold on total sales rather than taxable sales