Tenn. House approves food tax reduction

Tennessee House votes unanimously to reduce tax on groceries from 5.25 percent to 5 percent

Associated Press

NASHVILLE, Tenn. (AP) -- The state House has unanimously approved Tennessee Gov. Bill Haslam's proposal to cut the state's sales tax on groceries.

If approved by the Senate, the state's tax on groceries would drop by a quarter percentage point to 5 percent. Lawmakers last year enacted a cut of the same amount.

The state's sales tax on non-food items is 7 percent.

The tax reduction is projected to cost the state about $23 million in state revenue — or an average annual tax savings of about $3.56 for each Tennessean.

The companion bill is awaiting a vote in the Senate Finance Committee but is not expected to find much opposition.

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