Grocery bills to fall with food tax cut - WSMV News 4

Grocery bills to fall with food tax cut

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At grocery stores around Tennessee, food items had a 5.25 percent sales tax added on.

Come Monday, that number on the receipt will be a little lower thanks to the new state budget.

"I think it's terrific," said Judy Campbell, who was shopping at the Green Hills Kroger. "There are so many people that are struggling right now. I think it's a useful and helpful thing."

By lowering the food tax by 1/4 percent, the average person will save around $30 a year on groceries.

"That's not quite low enough," said shopper Wanena Davenport.

Some lawmakers think they might be able to bag the grocery tax altogether.

State Sen. Frank Niceley, R-Strawberry Plains, believes if Congress rolls out an internet sales tax, the state should offset that with a food tax cut.

"The bottom line is that you do not want to raise taxes during a recession," said Niceley.

State leaders think a federal law that mandates internet sales tax could net them about $400 million each year.

Last year the state collected $522 million in taxes on groceries.

So if the internet sales tax plan passes, there could be a huge food tax cut.

"I think that sounds like a good plan," said Campbell. "I haven't made up my mind about the internet tax. I think there are pros and cons on that."

But until then, shoppers will take any relief at the register they can get.

"I think it's encouraging," said shopper Barbara Wilkes.

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