Lawmakers file multiple tax bills to help Tennesseans at the cash register
NASHVILLE, Tenn. (WKRN) — Tennessee lawmakers have filed bills that they hope will help more Tennesseans’ wallets in the coming years.
With inflation still high, items such as groceries, school supplies, diapers and formula and even feminine hygiene products are some of the things lawmakers were hoping to have reduced tax burdens for Tennesseans. Here are some of the bills lawmakers have filed this session to help shoppers out.
HB 972/SB 741
This bill, filed by two Memphis Democrats, would exempt feminine hygiene products from sales tax during the state’s annual sales tax holiday. The sales tax holiday takes place annually in the last week of July and sees school supplies and certain electronics go on sale with no sales tax.
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The bill says the tax exemption would include items like tampons, pads, liners, cups and douches.
HB 1637/SB 1755
Filed by state Rep. Greg Martin (R-Hamilton County) and state Sen. Adam Lowe (R-Calhoun), this bill would remove the sales tax for infant diapers, wipes and formula for a full year, starting in July. This is the second of two bills related to the sales tax on infant items, with a similar measure filed in 2023 by state Rep. Johnny Garrett (R-Goodlettsville).
He told News 2 in 2023 the idea behind the bill was to provide “continuing relief” to Tennessee mothers and families needing the items. Garrett’s bill was “taken off notice” in April of 2023, meaning it was no longer being considered.
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Garrett’s bill also would have forever exempted the baby items from sales tax, while Martin’s bill would only exempt them for one year.
Martin’s bill has been placed behind the budget for 2024.
HB 1438/SB 1522
Tennessee Democrats also attempted to reduce the state sales tax rate on food items and swap it for a higher tax on tobacco products sold in the state.
State Rep. Bo Mitchell (D-Nashville) and state Sen. Heidi Campbell (D-Nashville) filed a measure that would remove the 4% state sales tax rate on food items and increase tax rates on cigarettes and other tobacco products. The measure would raise cigarette tax rates from 3 cents per cigarette to 8.35 cents per cigarette. It would also increase the tax on “other tobacco products” from 6.6% to 17% of the wholesale cost price.
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The House version of the bill was assigned to the Finance, Ways and Means Subcommittee earlier in February, but the Senate version was assigned to the General Subcommittee of the Senate Finance, Ways and Means Subcommittee, effectively killing the legislation for this session.
HB 2044/SB 2323
Another bill hoping to ease the tax burden on food items in grocery stores was filed by state Rep. Monty Fritts (R-Kingston) and state Sen. Ken Yager (R-Kingston). Their bills would exempt all food and food ingredients eligible under SNAP and WIC programs from state sales tax.
According to information from the state capitol, the measure would decrease state revenue by $147,864,100 in the coming fiscal year and subsequent fiscal years.
The House version was placed behind the budget, meaning it will not get further consideration until the general assembly passes a state budget.
HB 2413/SB 2468
One bill that likely will not make it out of committee is a bill from state Rep. Vincent Dixie (D-Nashville) and state Sen. Raumesh Akbari (D-Memphis) on the retail sale of marijuana.
As introduced, the bill would first authorize retail marijuana sales and then impose a tax on those sales. The bill would levy a 12% tax on all retail sales of cannabis.
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The tax funds would then be distributed to specific funds, including the general fund and for educational purposes: 20% of the tax revenue would be allocated to the general fund; 50% of the revenue would be “earmarked and allocated specifically and exclusively to educational purposes”; and the final 30% would be “credited to a special infrastructure account” that will be used to fund future projects identified as needed by the Tennessee advisory commission on intergovernmental relations (TACIR).
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