TN HB1530

Eliminates Tennessee's state sales tax on retail sales of food and food ingredients, effective July 1, 2026

Preserves local sales tax on food by keeping food and food ingredients taxable under the local option sales tax (part 7 of the tax code)

Removes the 0.5% portion of food sales tax that was previously earmarked for K-12 education funding

Requires counties and municipalities to receive allocations substantially equal to what they would have received from food sales tax, based on reported exempt food sales data

Updates retail food store licensing requirements to base the 20% food sales threshold on total sales rather than taxable sales