Local Government, General - As enacted, authorizes counties with a metropolitan form of government, by resolution of their governing bodies, to levy a tax on the retail sale of food and food ingredients for human consump, the official text

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~tate of ijtennessee

PUBLIC CHAPTER NO. 1014

                                                  HOUSE BILL NO. 2186

                                             By Representative Lamberth

                                       Substituted for: Senate Bill No. 2160

                                            By Senators Watson, Bowling

          AN ACT to amend Tennessee Code Annotated, Title 5; Title 6; Title 7 and Titie 67,
Chapter 6, relative to local government.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

          SECTION 1. Tennessee Code Annotated, Section 67-6-702(a)(1), is amended by adding
the following as a new subdivision (C):

                    (C)

                              (i) A county with a metropolitan form of government is authorized to:

                                        (a) Levy a tax on the retail sale of food and food ingredients, as
                              described in§ 67-6-228(a), within the county at a rate lower than the local
                              tax rate levied on other privileges, goods, and services; or

                                        (b) Exempt from the local tax rate the retail sale of food and food
                              ingredients, as described in§ 67-6-228(a), within the county.

                              (ii) The county shall furnish a certified copy of the adopted resolution
                    authorized in subdivision (a)(1 )(C)(i) to the department of revenue. The reduced
                    tax rate or exemption becomes effective on the first calendar day of the month
                    occurring at least sixty (60) days after the department receives the certified copy.
                    The reduced tax rate or exemption applies only to tax periods beginning on or
                    after October 1, 2026.

          SECTION 2. Tennessee Code Annotated, Section 67-6-705(d), is amended by adding
the language "or (a)(1)(C)" immediately after the language §11 67-6-702(a)(1)(B)(ii)".

          SECTION 3. Tennessee Code Annotated, Section 7-1-113, is amended by deleting from
subsection (a) all language between the second comma and the period, and by deleting
subdivisions (b)(1 )-(3).

          SECTION 4. This act takes effect upon becoming a law, the public welfare requiring it.
         HOUSE BILL NO. 2186

PASSED:  April 15, 2026

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                           CAMERON SEXTON, SPEAKER

                          HOUSE OF REPRESENTATIVES

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                         \           RANDY CNALLY

                                     SPEAKER OF T SENATE

1 APPROVED this \qIi. day of (V\a,,  2026

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BILL LEE, GOVERNOR