admin | December 28, 2007, 0:00 | No Comments »
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Your Grocery Bill Will Go Down A Little Beginning Jan. 1st
Posted on December 28, 2007
You’ll pay a little less sales tax at the grocery store beginning Tuesday because a reduction in the state’s sales taxes on food takes effect New Year’s Day.
State lawmakers in June agreed to give taxpayers a break on their food tax by lowering the amount from 6 cents on the dollar to 5.5 cents. A family spending $325 a month on food, a typical amount for a low-income family, will save about $20 a year from the half-cent cut.
The local option sales taxes on food, imposed by cities and counties, will stay the same.
Gov. Phil Bredesen opposed the cut in the food tax, fearing there would not be enough money to cover improvements he wanted to make to education programs.
That fear has become all the more real this year because sales and other taxes have lagged behind projections.
The half-cent cut in the food tax is expected to cost the state about $40 million, according to the Tennessee Department of Revenue.
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