Grocery Sales Tax May Be Suspended In This State

Amid rising inflation nationwide, one state is considering getting rid of sales tax on groceries.

In a statement today, Tennessee governor Bill Lee proposed a 30-day suspension of sales tax on groceries to give residents some financial relief at a time where food prices are at an all-time high.

Grocery items, in particular, have caught the brunt of inflation, rising 8.6% for the past 12 months. This is the highest year-over-year increase since April 1981, according to the monthly U.S. Consumer Price Index (CPI).

"As Americans see their cost-of-living skyrocket amid historic inflation, suspending the grocery tax is the most effective way to provide direct relief to every Tennessean," said Gov. Lee in a press release. "Our state has the ability to put dollars back in the pockets of hardworking Tennesseans, and I thank members of the General Assembly for their continued partnership in maintaining our fiscally conservative approach."

Lee's proposal to suspend state and local sales tax on groceries for 30 days will be included in the state's Fiscal Year 2022-2023 budget amendment, which will be delivered on Tuesday, March 29.

Republican House Speaker Cameron Sexton told reporters Thursday that the price tag for the proposed grocery sales tax suspension is still being worked out, but likely would be between $80 million and $110 million.

For more on grocery inflation, check out These 5 Groceries Are The Most Expensive Right Now.