As people return to work and school in 2008, their wallets will be a little heavier after a trip to the grocery store. The state sales tax on food and food ingredients will be reduced from 6% to 5.5% on the first day of the New Year.
The measure to reduce the sales tax on food was guided through the Senate by Sen. Mae Beavers (R-Mt. Juliet). Beavers, an advocate of completely eliminating the sales tax on food, calls the half-cent reduction a “good first move.”
In addition to lowering the state sales tax on food, the 2007 legislative session bill (now Public Chapter 600) specifies an additional sales tax holiday weekend in 2008 to take place March 21-23. Current law provides one annual sales tax holiday scheduled for the beginning of the school year in August for the purchase of clothing and school supplies.
“There is no question that the state needs to refund the taxpayers of their overpayment of taxes whenever possible,” stated Beavers. “The reduction especially assists the elderly and those families who need help the most, which is a step in the right direction,” commented Beavers.
The sales tax reduction will be on all food and food ingredients except prepared food, alcoholic beverages, candy, dietary supplements, and tobacco.