From August to October, residents of Tennessee will benefit from a suspension of the average 4% sales tax on food and food items, per the Tennessee Works Tax Act signed into law by Governor Bill Lee. This three-month grocery tax suspension is part of a tax relief package aiming to save Tennessee families and businesses more than $400 million.

This act stipulates $273 million towards the tax holiday on grocery items, aiming to alleviate some of the financial burden for Tennessee families. The Act further provides more than $150 million in annual tax relief for small businesses. This includes raising the exemption threshold for business tax, excluding the first $50,000 of net income from excise tax, and shielding the initial $500,000 in property investment from franchise tax. An additional $64 million is dedicated to simplifying tax administration, conforming with federal bonus depreciation provisions, and promoting investment in local production.

The legislation also aims to support Tennessee’s continued economic growth by aligning with over 30 other states adopting the “single sales factor” apportionment for franchise and excise tax.

In another legislative action, Governor Lee signed a law to bolster school safety in Tennessee. The law directs over $230 million towards enhancing safety in public and private schools. This includes $140 million for public schools to recruit school resource officers and highly-trained guards, establish a new grant fund accessible to all district schools, and increase mental health funding.

Despite these efforts, food banks like Second Harvest still witness escalated demand for their services, rising nearly tenfold since the start of the pandemic.