(The Center Square) – Tennessee Democrats are proposing an end to the state’s 4% grocery tax by replacing the tax revenue with a minimum corporate tax and requiring companies to report profits earned in foreign countries.
Senate Bill 2511 / House Bill 2007 was introduced by Nashville Democrats Rep. Aftyn Behn and Charlane Oliver during the 2025 session but did not make it out of committee.
Oliver said the Democrats’ plan is the only “serious path forward” as it proposed a way to replace the more than $800 million in revenue from the grocery tax.
“Republicans have had complete control of Tennessee state government for 15 years,” Oliver said Monday in a statement. “They’ve shown no interest in making life more affordable for working families with a grocery tax repeal. Instead, they’ve handed out billions in tax breaks to corporations while working families kept paying one of the highest grocery taxes in the nation.”
A Republican proposal by Rep. Todd Warner of Chapel Hill was placed “behind the budget,” which means it cannot be considered until lawmakers approve the fiscal 2027 spending plan. If approved, House Bill 1530 would require the state to continue sending the local portion of the food tax to cities and counties.
Other Republicans have targeted certain foods. Rep. Sabi “Doc” Kumar, R-Springfield, and Sen. Ferren Haile of Gallatin introduced the “Healthy Tennessee Grocery Tax Reform 2026,” which would remove the sales tax on foods deemed healthy but keep the tax on items deemed unhealthy, such as processed foods, sugary sodas, and some snacks. the
A bipartisan bill by Republican Sen. Richard Briggs and House Democrat Sam McKenzie would remove the tax on generic foods.
None of the bills have reached the House or Senate floor during the session and remain stalled in committee.
Grocery prices have risen since 2020, Behn said in a news conference.
“To Republican leadership, it’s time to get serious about ending the grocery tax, instead of cosplaying,” Behn said. “Get it done now so Tennesseans can feel relief at grocery stores.”
The bill is on the calendar for the March 17 meeting of the House Finance, Ways and Means subcommittee.
