TN SB2511

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

Removes the existing 0.5% grocery tax earmark that was designated for K-12 education funding

Requires the state to continue allocating funds to counties and municipalities in amounts substantially equal to what they would have received from grocery tax revenue before the exemption

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

Officially titled the "End the Grocery Tax Act"