TN HB1842

Eliminates the state sales tax on retail sales of food and food ingredients, effective July 1, 2026

Preserves local option sales tax authority on food and food ingredients under Part 7 of the tax code

Removes the provision earmarking 0.5% of food sales tax revenue for K-12 education funding

Updates liquor-by-the-drink license requirements to base the 20% food sales threshold on total sales rather than taxable sales, reflecting the new tax-exempt status of food