Tennessee House Bill HB1722

Tennessee 2025-2026 Regular Session

• Introduced: 1/20/26
• Refer: 1/22/26

Caption

AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 6, relative to the tax on the retail sale of food and food ingredients.

Impact

If enacted, HB1722 is expected to have a significant impact on grocery shopping practices throughout the state. By providing a tax exemption for food sales on a specific day each month, the bill intends to alleviate some financial burdens faced by consumers, particularly low-income families who may benefit most during times of month-end financial strain. The exemption is designed to encourage more shopping and, thereby, potentially stimulate local economies. However, the nature of its application could also necessitate changes in sales tax collection procedures for retailers.

Summary

House Bill 1722 proposes an amendment to Tennessee Code Annotated, Title 67, Chapter 6, which relates to the taxation on the retail sale of food and food ingredients. The primary aim of this bill is to create an exemption for certain food sales, allowing them to be exempt from tax during designated periods. Specifically, the legislation stipulates that food and food ingredients sold between 12:01 a.m. and 11:59 p.m. on the fifth day of any month would be exempt from the retail sales tax. However, this exemption does not apply to sales conducted via micro markets or vending machines.

Contention

The legislation has sparked a mixture of support and opposition among various stakeholders. Proponents argue that the bill is a positive step towards supporting families with food costs and allowing residents to shop more freely without the added burden of taxation. Conversely, critics argue the bill could complicate tax filing and tracking for retailers due to the need to distinguish between tax-exempt and taxable sales on a specific day. Additionally, some fear that the exemption may not significantly alleviate the overall cost of living pressures in the state, arguing that a more comprehensive approach to tax reform may be necessary.