Tennessee Senate Bill SB1695

Tennessee 2025-2026 Regular Session

• Introduced: 1/15/26

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, this bill would have a significant impact on the way sales taxes are collected for food items in Tennessee. By exempting food sales on a designated day each month, it is expected to reduce the financial burden on consumers purchasing groceries during the specified time. This change could lead to increased sales activity on that day, benefitting both consumers and retailers. However, the exclusion of micro markets and vending machine sales from the exemption could generate confusion regarding revenue expectations for these types of sales.

Summary

SB1695 aims to amend the Tennessee Code Annotated, specifically Title 67, Chapter 6, to introduce a new exemption from the tax on the retail sale of food and food ingredients. According to the proposed amendment, food items sold between 12:01 a.m. and 11:59 p.m. on the fifth day of any month would be exempt from sales tax. However, this exemption does not apply to sales from micro markets or vending machines, which is a key specification of the bill.

Sentiment

The sentiment around SB1695 appears to be cautiously optimistic among proponents who view it as a beneficial measure for consumers, particularly families who typically allocate a considerable portion of their budget to food. The bill’s intent to alleviate some financial pressures related to grocery shopping is positively received. However, there are concerns about the effectiveness of the exemption and whether it truly addresses the broader issues of food affordability in the state.

Contention

There are points of contention regarding what constitutes an appropriate scope for tax exemptions. While supporters advocate for consumer benefits, critics may argue that by limiting the exemption to specific sales channels, the bill does not adequately address the needs of all consumers. Additionally, there could be discussions about the potential economic implications for micro markets and vending machines that are excluded from the exemption, possibly leading to calls for adjustments or further amendments to the legislation.