In a move aimed at reducing the cost of living for Tennesseans, state lawmakers have pushed forward a bill that could see the end of grocery taxes in the state. This legislative effort, which seeks to remove the financial strain on families in Tennessee, has taken a definitive step through the state House after HB2043 passed the House Government Operations committee with a neutral recommendation. As reported by NewsChannel9, the bill will now proceed to the House Finance subcommittee.
Moving forward in the Senate subcommittee today, the bill, introduced by Democratic lawmakers Representative Aftyn Behn and Senator Charlane Oliver, passed a House Committee yesterday. They are aiming to swap out the grocery taxes, which currently stand at 4% with an additional local sales tax of up to 2.75%, with a newly proposed tax on big businesses. This business tax, set at three-quarters of a percent, would only affect businesses with gross receipts surpassing $250,000 and would impact around 33% of businesses within the state. Trying to close the door on hefty grocery bills for Tennessee's working families, Behn and Oliver are championing a bold wager against corporate tax benefits. "It is outrageous that in Tennessee some billion-dollar corporations are paying a lower tax bill than a single mother who works two jobs," Senator Oliver told NewsChannel5.
The proposed change comes off the back of a temporary reprieve in 2023 when the state abolished the 4% grocery sales tax for a three-month period. Backed by the community, volunteers spanned across ten counties garnering signatures in support of this initiative last weekend. Sharing the same sentiment as many of their constituents, grocery store owners Freddie and Eddie Robertson, told WKRN, "That couple of extra meals could literally be the difference between burning stomachs and having food to eat," pointing out the critical need for the bill among Tennesseans who struggle to afford basic necessities.
The progress of the legislation, however, remains uncertain. With Democrats in the state legislature being heavily outnumbered, odds of passing the bill seem steep. Despite this, Representative Behn remains undeterred, underscoring the need to fight for fiscal reforms that benefit everyday people. "In an election year, where inflation is still at all-time highs, [Tennesseans] want to see their elected officials come to the table, work on kitchen table issues, which is cheap groceries and eliminating this tax," Behn emphasized according to an interview with WKRN. The bill's fate will hinge on its performance in the next legislative session, with all eyes on how it fares amidst entrenched political divisions.
