Governor Haslam Reduces State Tax On Groceries

Grocery shoppers in the volunteer state may soon notice their grocery bills going down.

That's because Tennessee Governor Bill Haslam signed a law yesterday that reduces the state portion of the sales tax on groceries from 5.5 percent, to 5.25 percent.

Governor Haslam says the sales tax reduction is an effort to lower the tax burden on Tennesseans. More than 21 million dollars of the state budget will fund the legislation.

That reduced tax rate does not apply to prepared foods like restaurant meals, candy, alcohol, or tobacco.

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