Tennessee Senate Bill SB2135

Tennessee 2025-2026 Regular Session

• Introduced: 1/23/26

Caption

AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 6, relative to sales tax.

Impact

The proposed changes in SB2135 could significantly influence the understanding of revenue generation from food-related sales tax in Tennessee. By studying the tax revenues from both non-prepared and prepared food items, the bill seeks to offer the legislature data that may lead to adjustments in sales tax regulations. Such adjustments could have implications for both consumers and businesses, as they navigate potential changes in sales tax structures and rates in relation to food purchases.

Summary

Senate Bill 2135 aims to amend the Tennessee Code Annotated, specifically Title 67, Chapter 6, which pertains to sales tax regulations in the state. The bill urges the Department of Revenue to conduct a comprehensive study regarding the revenue derived from sales tax on non-prepared food items, such as fruits and vegetables, as well as retail sales of prepared foods over the previous five fiscal years. The findings of this revenue study are to be shared with key legislative committees, thereby providing critical data to inform future tax policy decisions.

Contention

While the bill does not appear explicitly contentious, potential areas of debate could revolve around the conclusions drawn from the revenue study. Stakeholders, including grocery retailers, restaurants, and consumer advocacy groups, may have differing perspectives on how sales taxes on food impact affordability and economic equity. Furthermore, the emphasis on future legislative action based on the study’s findings may lead to discussions about tax fairness and the economic burden on lower-income households who allocate a larger proportion of their budgets on food.