NASHVILLE, Tenn. (WRKN) – Top Republican lawmakers are proposing a bill that would change how local governments tax food and food ingredients, but there’s no sign they will institute another grocery tax holiday or get rid of it completely.

SB 2520 would give city and county governments the power to cut or reduce their grocery tax if they want to.

Tennessee activists prepare to fight grocery sales tax

Currently, the state levies a 4% tax on groceries and local government tax rate is 2.5% on average, according to the fiscal note on SB2520.

Rutherford County Property Assessor Rob Mitchell spends his days focused on the county’s revenue and doesn’t think this bill will help local governments or their taxpayers.

“That doesn’t make a whole lot of good sense to me,” Mitchell said of the bill. “It will be shooting themselves in the foot for no gain.”

Mitchell said if this is how state lawmakers want to provide some tax relief to their constituents, then lawmakers should also provide some funding to local governments to make up the difference.

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“Rutherford County is struggling to find revenue to pay for the growth that it’s experiencing. So to remove voluntarily or remove a sales tax, while it might be very attractive, it’s really going to put a strain on local government,” he said. “Shooting themselves in the foot for no gain.”

The bill sponsors did not respond to a request for an interview or comment on the bill. It will be discussed Wednesday, Feb. 21 in a House Subcommittee meeting.

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