Tenn. grocery tax set to decrease

MONROE, Tenn. - Tennessee's sales tax on groceries will drop from 5.25 percent to 5 percent.

Governor Bill Haslam was in Monroe County for a ceremonial bill signing at Sloan's Grocery in Vonore, Tennessee.

The bill is one of two tax cuts passed by the legislature and signed by Governor Haslam this year.

There is $23 million in next year's state budget to fund the legislation. The lower rate goes into effect July 1, 2013.

It does not apply to prepared foods such as a meal at a restaurant, candy, alcoholic beverages or tobacco.

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