Gov. Lee Proposes Grocery Tax Suspension

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Tennessee Governor Bill Lee

Direct relief for Tennesseans facing nationwide cost-of-living surge

NASHVILLE (March 24) – Last week, Tennessee Governor Bill Lee announced his proposal for a 30-day suspension of state and local grocery sales tax to provide direct financial relief to Tennesseans amid surging inflation nationwide.

“As Americans see their cost-of-living skyrocket amid historic inflation, suspending the grocery tax is the most effective way to provide direct relief to every Tennessean,” said Gov. Lee. “Our state has the ability to put dollars back in the pockets of hardworking Tennesseans, and I thank members of the General Assembly for their continued partnership in maintaining our fiscally conservative approach.”

The Governor’s proposal to suspend state and local sales tax on groceries for 30 days is included in the Fiscal Year 2022-2023 budget amendment, which was delivered on Tuesday, March 29.

Lee hosted a roundtable with business leaders in Covington Thursday, March 24, to discuss the tax cut proposal and hear about the local impacts of nationwide economic challenges.