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SB 1164

Taxes, Sales - As introduced, exempts the retail sale of fresh, frozen, and canned fruit and vegetables for human consumption from the food retail sales tax. - Amends TCA Section 67-6-228.

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

Tennessee bill exempts fresh, frozen, and canned produce from state sales tax to reduce grocery costs, with uncertain revenue impact and complex product classification requirements.

Placed on Senate Finance, Ways, and Means Committee calendar for 4/21/2026
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Bill Summary · SB 1164

Legislative bill overview

SB 1164 would eliminate Tennessee's sales tax on fresh, frozen, and canned fruits and vegetables intended for human consumption. The bill amends the state tax code to create a broad exemption for these food categories at the retail level.

Why is this important

Food tax exemptions directly affect household grocery costs, with the greatest impact on lower-income families who spend a higher percentage of their budgets on food. Tennessee currently taxes most food items, making this a significant policy shift that could reshape the state's tax base and revenue structure while potentially improving food affordability and nutrition access.

Potential points of contention

  • Revenue impact: Removing sales tax on produce categories would reduce state tax collections substantially; the fiscal note would clarify the actual cost to the budget
  • Definitional complexity: Distinguishing "fresh, frozen, and canned" produce for tax purposes creates enforcement challenges and potential loopholes (e.g., pre-packaged salads, vegetable-based prepared foods)
  • Equity of benefit: Tax exemptions benefit all purchasers equally in dollars saved, meaning wealthier households save more in absolute terms despite lower-income households benefiting proportionally more
  • Implementation burden: Retailers and tax administrators must retrain systems and staff to correctly classify products at point of sale

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

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