Gov. Lee Proposes Suspension of Grocery Sales Tax in Tennessee

State tax would be withheld for 30 days

NASHVILLE (WDEF) — Gov. Bill Lee has not pulled the trigger on a suspension of the state’s gas tax yet. However, he did announce a proposal to suspend the state’s grocery tax for 30 days. The proposal was announced Thursday to “provide direct financial relief to Tennesseans” among the country’s record-high inflation.

Retired teacher Beth Krabbengam believes it’s a good start to aid struggling families and those living on a tight budget.

“They need a break,” Krabbengam said. “You know, it’s too much. We obviously are at the age that we don’t have that kind of problem as much as you would when you have smaller families. So I think they need a break.”

Food City’s Vice President of Marketing Kevin Stafford released a statement on behalf of the company saying the tax suspension “would effectively put additional dollars back into the pockets of Tennesseans.”

“Provided that retailers have ample time to prepare our systems and plan for this initiative, it would be great for Tennesseans because so many of the factors that affect inflation are beyond the control of grocery retailers,” he said.

The tax suspension on groceries will be included in the Fiscal Year 2022-2023 budget amendment, which will be held on Tuesday, March 29.

3/25/22, Article updated to clarify status of proposed tax suspension.

Categories: Featured, Local News, State News-Tennessee