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HB 1893

Taxes, Sales - As introduced, authorizes a county with a metropolitan government to levy a tax on the retail sale of food and food ingredients for human consumption within the county at a rate less than the local option sales tax rate. - Amends TCA Title 7 and Title 67.

114th Regular Session (2025-2026) Introduced by Caleb Hemmer

Bill authorizes select Tennessee counties to levy a separate sales tax on groceries at rates below current local sales tax, potentially raising county revenue but increasing tax burden on food purchases.

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Bill Summary · HB 1893

Legislative bill overview

HB 1893 would allow Tennessee counties with metropolitan governments to impose a separate sales tax specifically on food and food ingredients for human consumption at a rate lower than their existing local option sales tax. The bill amends state tax code to create this new taxing authority while capping the rate below current local sales tax levels.

Why is this important

Food sales taxes directly affect household budgets, particularly for lower-income families who spend a larger percentage of income on groceries. This bill could generate revenue for county governments while potentially allowing them to differentiate tax rates between essential food items and other taxable goods—a policy choice with real distributional consequences.

Potential points of contention

  • Regressivity concerns: Sales taxes on food are regressive, disproportionately burdening low-income households; critics may argue this expands that burden even if rates are modest
  • Rate uncertainty: The bill permits rates "less than" the local option tax but doesn't specify a maximum, creating potential for rates that could still meaningfully impact food affordability
  • Geographic complexity: Limiting this to metropolitan counties only raises fairness questions about why rural and non-metropolitan counties wouldn't have the same authority
  • Revenue trade-offs: Unclear whether this is meant to replace existing taxes or generate new revenue, and what services it would fund

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

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