TN HB2007

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

Removes the existing 0.5% food tax earmarked for K-12 education from the state general fund

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

Updates alcohol licensing requirements for grocery stores to maintain the 20% food sales threshold without reference to taxable sales

Officially cited as the "End the Grocery Tax Act"