(VONORE, Tenn.) -- Gov. Bill Haslam signed a bill Monday that lowered the state portion of sales tax on groceries to 5 percent, the culmination of a two-year effort.
The previous sales tax rate on groceries was 5.25 percent. That rate was set in 2012 when the General Assembly passed the bill, which was regarded as the first step in reaching the 5 percent goal.
“The sales tax on food impacts all Tennesseans, and I applaud the General Assembly for passing this important piece of legislation this year,” said Haslam at the ceremonial signing at Sloan’s Grocery in Vonore, Tenn.
The reduced tax rate does not apply to prepared foods such as a meal at a restaurant, candy, alcoholic beverages or tobacco.
The legislation goes into effect July 1.
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