TN Legislators Consider Ending Grocery Tax

CHATTANOOGA, Tenn. (WDEF) – A major tax debate is unfolding in Tennessee as state lawmakers consider eliminating the grocery tax, a move advocates say would provide much-needed relief for struggling families. 

For Tennessee families, every trip to the grocery store comes with a financial strain. With one of the highest grocery taxes in the country, many are forced to make difficult choices at the checkout. But now, a new bill could change that. 

News 12 spoke with Allen Shropshire, C.A.L.E.B Representative, about his stance on the tax debate and why attending events like Tennessee’s Day on the Hill is so important in these matters. Here is what Allen had to say:

“I feel like people should be at the business forefront. These families and their kids should be at the forefront because the people keep the corporation and these businesses running. Even if they don’t work, they’re spending money at these places so why aren’t these people being uplifted?” 

The proposed legislation would eliminate the grocery tax, and lawmakers behind the bill say they’ve identified a way to pay for it, by closing loopholes that allow large corporations to avoid paying their fair share in taxes. According to a report from the Institute on Taxation and Economic Policy, Tennessee loses up to $891 million a year due to these tax loopholes. 

The Tennessee Department of Revenue confirms that nearly one-quarter of companies earning over $1 billion pay zero in corporate income tax.

But not everyone is on board. Opponents of the bill argue that eliminating the grocery tax could lead to funding cuts for essential state services. 

Despite the debate, momentum is growing among advocacy groups and community leaders, urging lawmakers to take action. 

The bill will be debated in the legislature this week, with a critical decision ahead: 

We will continue following this story and bring you updates as lawmakers take action.