Amends Tennessee tax laws to exempt food and food ingredients from sales tax while adjusting related tax allocations.

This bill amends Tennessee tax laws to exempt the retail sale of food and food ingredients from sales tax, while simultaneously making these items taxable under specific tax provisions. It removes certain revenue allocations for education and redistributes those funds to counties and municipalities. The bill also modifies various sections to reflect the new tax status of food and food ingredients, including adjustments to sales reporting and tax rate calculations. The changes take effect on July 1, 2025.

Amends Tennessee tax laws to exempt food and food ingredients from sales tax while adjusting related tax allocations.

This bill amends Tennessee tax laws to exempt the retail sale of food and food ingredients from sales tax, while simultaneously making these items taxable under specific tax provisions. It removes certain revenue allocations for education and redistributes those funds to counties and municipalities. The bill also modifies various sections to reflect the new tax status of food and food ingredients, including adjustments to sales reporting and tax rate calculations. The changes take effect on July 1, 2025.