MEMPHIS, Tenn. — As inflation continues, many are keeping their eyes open for ways that they can spend less on items that they need the most.
Tennessee Gov. Bill Lee announced that he will be requesting immediate relief for Tennessee tax payers by including a 30-day grocery tax suspension in the Fiscal Year 2022-2023 budget amendment Thursday, March 24.
“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,” Gov. Lee. Said. “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 also hosted a Business Leaders Roundtable in Covington at Naifeh’s Cash Saver at 3 p.m. Thursday. Watch the live stream HERE.
The roundtable gave Lee the opportunity to to discuss the grocery tax cut proposal and the extensive impact of inflation on the economy with business leaders.
The proposal would suspend the 4% state grocery tax and local sales taxes. In Shelby County, that's 2.25% with an additional 0.5% within the city of Memphis.
That would add up to $6.75 saved for every $100 spent on groceries if the bill was passed, or around $75 a month for the average family of four in the US.
Here's a breakdown of what's currently taxed at the 4% grocery tax rate (and where shoppers would see the proposed tax cuts in place):
The fiscal year budget amendment will be delivered on Tuesday, March 29.
Editor's Note: The original article stated that the local sales tax would not be impacted. The article has been edited to reflect that both state and local sales tax would be suspended.