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The Tennessee Conservative [By Olivia Lupia] –
Both chambers of the legislature have passed a bill which would allow counties with a metropolitan form of government to lower or exempt food or food ingredients from local sales tax, though the legislation would only apply to three areas in the state.
HB2186/SB2160 by Rep. William Lamberth and Sen. Bo Watson authorizes these metro counties to either tax food and food ingredients “within the county at a rate lower than the local tax rate levied on other privileges, goods, and services” or exempt them completely from the local sales tax.
Tennessee currently only has three metro governments to which this exemption could apply, Nashville-Davidson, Memphis-Shelby, and Hartsville-Trousdale. But according to Rep. Lamberth, legislation already exists allowing cities to reduce or eliminate their own grocery taxes but apparently neglected the metro governments, which this bill now seeks to remedy.
But the bill also includes a provision deleting “obsolete provisions relating to the timing for reducing the membership of metropolitan councils,” referring to a 2023 bill passed by the General Assembly reducing the cap on city and metro councils from 40 members to 20.
As Nashville would be the only government affected by such a requirement, the city sued the state over the law and it currently remains tied up in court.
The verbiage in HB2186 became a sticking point for Democrats in both chambers who supported the grocery tax cuts but felt the transition language may have some impact on the lawsuit or was a further “attack” on Nashville.
Rep. Lamberth explained that when the original legislation was passed, the language was intended to help these governments transition through the process, but the timeframes were longer relevant as they had long since passed and the legislation is still not enacted. Therefore, he said, the provision in the sales tax bill was meant to simply remove language from Tennessee code that is now obsolete.
Despite these reassurances, and similar arguments in the Senate, the bill passed both chambers mainly along party lines, though a few House Democrats joined Republicans in voting “Yes”. It will now proceed to the Governor for signature into law.
Several bills were brought before the legislature this session which would have reduced or eliminated the grocery tax from certain or all foods, but one is officially dead for the year and the others are likely to find the same fate.
While there was great bipartisan support for tackling this issue and assurances from Republican leadership it would be addressed, with the close of the 114th General Assembly looming this week, it appears HB2186/SB2160 will be the only concession lawmakers will make to address constituent concerns about rising costs of groceries and food this year.
About the Author: Olivia Lupia is a political refugee from Colorado who now calls Tennessee home. A proud follower of Christ, she views all political happenings through a Biblical lens and aims to utilize her knowledge and experience to educate and equip others. Olivia is an outspoken conservative who has run for local office, managed campaigns, and been highly involved with state & local GOPs, state legislatures, and other grassroots organizations and movements. Olivia can be reached at olivia@tennesseeconservativenews.com.
