Tennessee lawmakers push new legislation to end state grocery tax

NASHVILLE, Tenn. (WKRN) — Tennessee lawmakers hosted a community forum on Wednesday night to end the state grocery tax.

Right now, Tennesseans pay a 4% sales tax on groceries, but some lawmakers say new legislation could change that.

State Sen. Charlane Oliver (D-Nashville) and State Rep. Aftyn Behn (D-Nashville) held a community hearing, “Tennessee For All.”

While the meeting brought together support to end the grocery tax, it was also meant to build support for their new bill.

The worldwide combined reporting legislation would close corporate tax loopholes by making large corporations report all of their income.

Tax experts say the legislation holds big businesses accountable for paying taxes. But it also offsets the nearly $900 million revenue loss the state would lose from the grocery tax which could cut education, health care and public safety.“You don’t have to do this; you can choose who pays taxes,” state policy analyst at the Institute on Taxation and Economic Policy, Eli Byerly-Duke, said. “What Tennessee has right now is very low taxes for the rich and high taxes for lower and working middle-class people.”

Tax experts addressed whether the threat of higher taxes would drive big businesses away from the state. They assured residents businesses threatening to leave the state would breach their contract with shareholders.Some critics also questioned if ending the grocery tax would create an opportunity for grocery chains like Kroger and Publix to increase the price of groceries. But according to experts, grocery chains have already set their prices to receive the highest revenue, so the prices aren’t likely to change.

Both lawmakers are hoping to build a team of Nashvillians to end the state grocery tax.Residents were encouraged to reach out to their state legislature and ask them to support this bill.