Tennessee 2025-2026 Regular Session

Tennessee Senate Bill SB1367 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	HOUSE BILL 21
3	3	By Davis
4	4
5	5	SENATE BILL 1367
6	6	By Watson
7	7
8	8
9	9	SB1367
10	10	000429
11	11	- 1 -
12	12
13	13	AN ACT to amend Tennessee Code Annotated, Title 57,
14	14	Chapter 3 and Title 67, relative to taxation.
15	15
16	16	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
17	17	SECTION 1. Tennessee Code Annotated, Section 67-6-228(a), is amended by deleting
18	18	the subsection and substituting instead the following:
19	19	(a) Notwithstanding this chapter to the contrary, except as otherwise provided in
20	20	subsections (b) and (c), the retail sale of food and food ingredients shall not be taxed.
21	21	SECTION 2. Tennessee Code Annotated, Section 67-6-228, is amended by adding the
22	22	following language as a new subsection (c):
23	23	Notwithstanding § 67-6-702(a) to the contrary, food and food ingredients are
24	24	taxable under part 7 of this chapter.
25	25	SECTION 3. Tennessee Code Annotated, Section 67-6-103(c)(2), is amended by
26	26	deleting the following language:
27	27	Revenue generated from one-half percent (0.5%) of the tax rate provided in § 67-6-228
28	28	shall continue to be deposited in the state general fund and earmarked for education
29	29	purposes in kindergarten through grade twelve (K-12) regardless of whether the tax rate
30	30	provided in § 67-6-228 is reduced below six percent (6%).
31	31	SECTION 4. Tennessee Code Annotated, Section 67-6-103(u), is amended by deleting
32	32	the subsection and substituting instead the following:
33	33	(u) Notwithstanding the allocations provided for in subsection (a), there must be
34	34	allocated and distributed to the counties and municipalities an amount substantially
35	35	equal to the amount that would have been allocated to the counties and municipalities
36	36
37	37
38	38	- 2 - 000429
39	39
40	40	under subdivision (a)(3) but for the exemption from sales tax applicable to the retail sale
41	41	of food and food ingredients. The allocation provided in this subsection (u) must be
42	42	based on the reporting of exempt sales of food and food ingredients and any other data
43	43	or information the commissioner deems relevant.
44	44	SECTION 5. Tennessee Code Annotated, Section 67-6-329(a), is amended by adding
45	45	the following as a new, appropriately designated subdivision:
46	46	( ) Food and food ingredients;
47	47	SECTION 6. Tennessee Code Annotated, Section 67-6-329(a)(18), is amended by
48	48	deleting the language "or food and food ingredients".
49	49	SECTION 7. Tennessee Code Annotated, Section 67-6-229, is amended by deleting the
50	50	language "food and food ingredients or".
51	51	SECTION 8. Tennessee Code Annotated, Section 57-3-802(1), is amended by deleting
52	52	the language "that derives at least twenty percent (20%) of its sales taxable sales from the retail
53	53	sale of food and food ingredients for human consumption taxed at the rate provided in § 67-6-
54	54	228(a)" and substituting instead the language "that derives at least twenty percent (20%) of its
55	55	sales from the retail sale of food and food ingredients for human consumption".
56	56	SECTION 9. Tennessee Code Annotated, Section 57-3-806(d)(1), is amended by
57	57	deleting the language "must maintain a minimum of twenty percent (20%) of the licensee's sales
58	58	taxable sales from the retail sale of food and food ingredients for human consumption taxed at
59	59	the rate provided in § 67-6-228(a)" and substituting instead the language "must maintain a
60	60	minimum of twenty percent (20%) of the licensee's sales from the retail sale of food and food
61	61	ingredients for human consumption".
62	62	SECTION 10. This act takes effect July 1, 2025, the public welfare requiring it.