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SB 1695

Taxes, Exemption and Credits - As introduced, exempts the retail sale of food and food ingredients from the sales and use tax when sold on the fifth day of any month. - Amends TCA Title 67, Chapter 6.

114th Regular Session (2025-2026) Introduced by Raumesh Akbari

Bill exempts Tennessee food sales from state sales tax only on the fifth day of each month, creating recurring monthly tax relief for grocery purchases.

Placed on Senate Finance, Ways, and Means Committee calendar for 4/20/2026
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WeVote Research Nonpartisan
Bill Summary · SB 1695

Legislative bill overview

SB 1695 would exempt the retail sale of food and food ingredients from Tennessee's sales and use tax, but only on the fifth day of each month. This creates a temporary, recurring tax holiday specifically timed to coincide with when many benefit recipients receive monthly assistance payments.

Why is this important

Food purchases represent a significant household expense, particularly for low-income families. A monthly tax exemption day could provide modest savings for consumers while potentially increasing foot traffic to retail locations on that specific date. However, the real-world impact depends heavily on whether businesses pass savings to consumers and whether the revenue loss is offset elsewhere.

Potential points of contention

  • Revenue impact: Exempting food sales one day per month reduces state tax revenue; legislators must determine if this is fiscally sustainable or requires compensating cuts/increases elsewhere
  • Equity concerns: A single exemption day may disproportionately benefit those with flexible schedules who can shop on the fifth, potentially excluding shift workers and those with limited mobility
  • Administrative complexity: Retailers must track and apply different tax rules based on calendar date, increasing compliance costs and potential errors
  • Economic effectiveness: The targeted approach may be less effective at supporting food security compared to broader exemptions or direct assistance programs

Compiled from official sources — confirm details with the bill’s official record.

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