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HB 2059

Taxes, Sales - As introduced, reduces the rate on the state sales tax on food and food ingredients from 4 percent to 2 percent of the sales price. - Amends TCA Title 67, Chapter 6.

114th Regular Session (2025-2026) Introduced by Joe Towns

HB 2059 cuts Tennessee's sales tax on food and food ingredients from 4% to 2%, reducing grocery costs but decreasing state revenue by millions annually.

Taken off notice for cal in s/c Finance, Ways, and Means Subcommittee of Finance, Ways, and Means Committee
#sales #taxes
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Bill Summary · HB 2059

Legislative bill overview

HB 2059 would reduce Tennessee's state sales tax on food and food ingredients from 4% to 2%, effectively cutting the tax rate in half on these essential goods. The bill amends Tennessee Code Annotated Title 67, Chapter 6, which governs sales tax regulations.

Why is this important

Food purchases are a necessity that impacts all households, particularly lower-income families who spend a larger percentage of their income on groceries. Reducing this tax would provide immediate relief at checkout but would simultaneously reduce state revenue needed to fund government services and programs.

Potential points of contention

  • Revenue impact: The state would lose significant tax revenue from this reduction, requiring either cuts to spending, increases in other taxes, or identification of new revenue sources
  • Fairness questions: Some argue sales tax cuts benefit all income levels equally despite wealthier households buying more food in total dollar amounts, while others view it as regressive tax relief
  • Implementation complexity: The bill would require defining which items qualify as "food and food ingredients" versus prepared foods or non-food items, creating potential disputes and administrative burden

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

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