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SB 1835

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 Raumesh Akbari

SB 1835 cuts Tennessee's grocery sales tax from 4% to 2%, reducing consumer costs but sacrificing substantial state revenue without identified offsets.

Placed on Senate Finance, Ways, and Means Committee calendar for 4/20/2026
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Bill Summary · SB 1835

Legislative bill overview

SB 1835 would reduce Tennessee's state sales tax on food and food ingredients from 4% to 2%, cutting the tax rate in half on these essential grocery items. The bill amends the state tax code and has been introduced by Senator Raumesh Akbari but received a negative recommendation from the Senate Finance, Ways, and Means Committee.

Why is this important

Food is a non-discretionary expense that consumes a larger percentage of lower-income households' budgets, making sales tax on groceries a regressive tax policy. Reducing this tax would provide immediate relief to all Tennessee consumers at the checkout, though the state would forgo significant tax revenue that currently funds government services.

Potential points of contention

  • Revenue impact: Cutting food sales tax by 50% would substantially reduce state revenues; the bill provides no identified funding source or offsetting revenue measures to maintain current service levels
  • Equity of benefit: While lower-income households spend more on food proportionally, wealthier households would also benefit from the tax cut, raising questions about whether this is the most efficient way to help those most in need
  • Implementation complexity: Changes to sales tax rates require updates to point-of-sale systems, tax administration procedures, and clear definitions of what qualifies as "food and food ingredients" (prepared foods, supplements, alcohol, etc.)

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

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