Tennessee legislators are once again considering the future of the state’s grocery tax.
According to a new analysis from Trace One (Tennessee Leaders to Debate Grocery Tax Removal), Tennessean consumers spend less on groceries than residents in most other states.
The report indicates that Tennessee households allocate approximately $700 per month to grocery purchases, representing 44.1% of their total food expenditures and 7% of overall consumer spending. By comparison, $887 is spent monthly on dining out.
Tennessee ranks 41st nationally in grocery spending, with an even more favorable position when evaluating the proportion of food-related expenses.
There is a growing trend across the United States to exempt groceries from sales tax; although previous efforts to pursue this policy in Tennessee have not succeeded, the matter has resurfaced for debate in the current legislative session.
