Tennessee lawmaker proposes two month long 'Food Tax Holiday' benefiting Tennesseans

NASHVILLE, Tenn.--A Tennessee lawmaker is proposing a bill which would give all Tennesseans a 4% tax break on food for two months.

HB 1697 is sponsored by Representative Patsy Hazlewood (R-Signal Mountain). Currently, all Tennesseans pay a 4% state sales tax on food items. Under Rep. Hazlewood's bill, Tennesseans would get two months of relief from the tax this year.

Speaking with FOX 17 News, Rep. Hazlewood says the "Food Tax Holiday" -as it is otherwise known, is a way to make sure all Tennesseans benefit from the state's economic success.

"I've been thinking about this idea for a while as a way we could put some money back," Hazlewood says. "We've been enjoying economically good times, but there are not many ways to give the money back to everyday Tennesseans."

Rep. Hazlewood says while the state has made many tax breaks for investors or businesses, there have not been many for those who don't invest or are not involved in sectors where those tax breaks have helped. "Everyone has to buy food so its a way to make sure everyone can benefit from the surplus," Rep. Hazlewood says.

The Food Tax Holiday would begin on June 1, 2020 and run through July 31, 2020, affecting all food items purchased by Tennesseans. The dates were also given plenty of thought as Rep. Hazlewood says it would help out children and families. "We chose June and July because kids are out of school and some children and families who rely on school lunches might be able to benefit. It could help single moms and others during those months," Rep. Hazlewood says.

The holiday would take about $100 million out of the state's surplus but local governments would not be affected since local sales taxes would continue to be charged. Any loss of revenue to counties or municipalities would be reimbursed from the state's surplus, which is already available.

See the full bill below or CLICK HERE: