Gov. Haslam signs bill lowering grocery tax
Governor Bill Haslam signed legislation Monday to reduce the sales tax on groceries.
Haslam signed the bill in a ceremony at Sloan's Grocery in Monroe County. The bill reduces the current tax from 5.25 percent to five percent.
The tax has seen a steady decrease. In 2012, The General Assembly passed and Haslam signed a bill which reduced the previous tax from 5.5 percent to 5.25 percent.
"We're lowering taxes and balancing the state budget by managing conservatively, making strategic investments in our priorities and finding new ways to make government more efficient and effective," Haslam said. "The sales tax on food impacts all Tennesseans, and I applaud the General Assembly for passing this important piece of legislation this year."
Haslam included $23 million in the 2013-2014 budget to fund the bill.
The reduced tax rate does not apply to prepared foods such as a meal at a restaurant, candy, alcoholic beverages or tobacco.