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HB 633

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 John Clemmons

Bill removes sales tax from fresh, frozen, and canned produce to reduce grocery costs for consumers, particularly low-income households, but decreases state tax revenue.

Assigned to s/c Finance, Ways, and Means Subcommittee
#sales #taxes
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Bill Summary · HB 633

Legislative bill overview

HB 633 would exempt the retail sale of fresh, frozen, and canned fruits and vegetables from Tennessee's food retail sales tax. The bill modifies TCA Section 67-6-228 to create this categorical exemption for produce intended for human consumption.

Why is this important

Food sales taxes disproportionately burden lower-income households, which spend a larger percentage of their income on groceries. This exemption would reduce the cost of produce for all consumers while potentially incentivizing healthier food choices, though it represents a reduction in state tax revenue that would need to be offset elsewhere.

Potential points of contention

  • Revenue impact: Removing sales tax from produce sales will decrease state tax collections; the fiscal note will clarify the magnitude and whether offsetting revenue adjustments are needed
  • Definition boundaries: Determining what qualifies as "fresh, frozen, and canned" could create ambiguity (e.g., pre-made salads, processed vegetable products, or produce in prepared meal kits)
  • Regressive nature concerns: Critics may argue selective exemptions complicate the tax code; proponents counter this targets an essential health category where lower-income families need relief most

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

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