Beginning July 1, Tennessee will see a reduction in their grocery sales tax from 5.5% down to 5.25%. This cut, which was passed by the General Assembly last month and figures to save your average consumer about $3.40 a year, will cost the state about $22 million in revenue over that period. The governor intends to sign another reduction the following year, dropping the tax down to 5.0%, as part of a larger plan to reduce a number of taxes throughout the state. The grocery tax does not apply to items such as prepared food, dietary supplements, candy, alcohol, or tobacco.
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