Tennessee 2025-2026 Regular Session

Tennessee House Bill HB0021 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2		-	SENATE BILL 1367
3		-	By Watson
	2	+	<BillNo> <Sponsor>
4	3
5	4		HOUSE BILL 21
6	5		By Davis
7	6
8	7
9	8		HB0021
10	9		000429
11	10		- 1 -
12	11
13	12		AN ACT to amend Tennessee Code Annotated, Title 57,
14	13		Chapter 3 and Title 67, relative to taxation.
15	14
16	15		BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
17	16		SECTION 1. Tennessee Code Annotated, Section 67-6-228(a), is amended by deleting
18	17		the subsection and substituting instead the following:
19	18		(a) Notwithstanding this chapter to the contrary, except as otherwise provided in
20	19		subsections (b) and (c), the retail sale of food and food ingredients shall not be taxed.
21	20		SECTION 2. Tennessee Code Annotated, Section 67-6-228, is amended by adding the
22	21		following language as a new subsection (c):
23	22		Notwithstanding § 67-6-702(a) to the contrary, food and food ingredients are
24	23		taxable under part 7 of this chapter.
25	24		SECTION 3. Tennessee Code Annotated, Section 67-6-103(c)(2), is amended by
26	25		deleting the following language:
27	26		Revenue generated from one-half percent (0.5%) of the tax rate provided in § 67-6-228
28	27		shall continue to be deposited in the state general fund and earmarked for education
29	28		purposes in kindergarten through grade twelve (K-12) regardless of whether the tax rate
30	29		provided in § 67-6-228 is reduced below six percent (6%).
31	30		SECTION 4. Tennessee Code Annotated, Section 67-6-103(u), is amended by deleting
32	31		the subsection and substituting instead the following:
33	32		(u) Notwithstanding the allocations provided for in subsection (a), there must be
34	33		allocated and distributed to the counties and municipalities an amount substantially
35	34		equal to the amount that would have been allocated to the counties and municipalities
	35	+	under subdivision (a)(3) but for the exemption from sales tax applicable to the retail sale
36	36
37	37
38	38		- 2 - 000429
39	39
40		-	under subdivision (a)(3) but for the exemption from sales tax applicable to the retail sale
41	40		of food and food ingredients. The allocation provided in this subsection (u) must be
42	41		based on the reporting of exempt sales of food and food ingredients and any other data
43	42		or information the commissioner deems relevant.
44	43		SECTION 5. Tennessee Code Annotated, Section 67-6-329(a), is amended by adding
45	44		the following as a new, appropriately designated subdivision:
46	45		( ) Food and food ingredients;
47	46		SECTION 6. Tennessee Code Annotated, Section 67-6-329(a)(18), is amended by
48	47		deleting the language "or food and food ingredients".
49	48		SECTION 7. Tennessee Code Annotated, Section 67-6-229, is amended by deleting the
50	49		language "food and food ingredients or".
51	50		SECTION 8. Tennessee Code Annotated, Section 57-3-802(1), is amended by deleting
52	51		the language "that derives at least twenty percent (20%) of its sales taxable sales from the retail
53	52		sale of food and food ingredients for human consumption taxed at the rate provided in § 67-6-
54	53		228(a)" and substituting instead the language "that derives at least twenty percent (20%) of its
55	54		sales from the retail sale of food and food ingredients for human consumption".
56	55		SECTION 9. Tennessee Code Annotated, Section 57-3-806(d)(1), is amended by
57	56		deleting the language "must maintain a minimum of twenty percent (20%) of the licensee's sales
58	57		taxable sales from the retail sale of food and food ingredients for human consumption taxed at
59	58		the rate provided in § 67-6-228(a)" and substituting instead the language "must maintain a
60	59		minimum of twenty percent (20%) of the licensee's sales from the retail sale of food and food
61	60		ingredients for human consumption".
62	61		SECTION 10. This act takes effect July 1, 2025, the public welfare requiring it.