Tennesseans anticipate the upcoming three-month-long “grocery tax holiday”

CHATTANOOGA, Tenn. (WDEF)- In a few short months, Tennesseeans will experience the largest and longest-living tax cut in Tennessee history.

The recently passed rule is being called the “Tennessee Works Tax Act,” which is a three-month long tax cut on food and food ingredients.

This act will allow for the largest tax cut in Tennessee’s history, equaling out to about $400 million dollars.

Tennessee Governor, Bill Lee said, “We are proud to continue that legacy this year by putting dollars back in the pockets of Tennesseans and supporting future economic growth across Tennessee.”

One local grocery store owner thinks this is a great leg up for so many within the community following inflation.

“I’m glad that the state has taken a proactive measure to help relieve people of Tennessee in these inflation area prices of food right now,” said Chuck Pruett, owner of Pruett’s Market.

From August through October 2023, Tennesseans will not pay tax on food and food ingredients sold in grocery stores.

“I would like to see them do it sooner than later because, you know, kids are going to be getting out of school and more kids are eating at home and families are eating at home with longer daylight hours, and I think it’s something that would help them sooner than later,” said Pruett.

On average, each Tennessee family will save over $100 in taxes.

Senate Majority Leader Jack Johnson said, “We are proud to be one of the lowest taxed states in the nation, and these tax cuts reinforce our dedication to being a pro-business and pro-family state with low taxes.”

The act also provides an optional paid family leave tax credit for companies to support Tennessee families.

“I hope the state of Tennessee will make it permanent. It’s a necessity that everybody has to have to live and it’s a shame that we have to tax the citizens of Tennessee on this,” said Pruett.

To learn more about the Act, you can visit the website here.