LA VERGNE, Tenn. (WKRN) — It’s been a tough year when it comes to inflation and groceries.
Starting in August, Tennessee residents will get some relief in the form of a food tax holiday.
The food tax in Tennessee is 4%, so you won’t be saving a ton of money, but it could be enough to splurge on something you may not have before.
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“It’s a good thing. She might be able to have a little extra stuff,” La Vergne resident Annette Cobbs said about her daughter. “Little kids want things that they don’t understand.”
Cobbs buys groceries for both herself and her daughter, who has a child of her own. Between the three of them, Cobbs might save close to $50 with the holiday.
“I typically spend a lot on her groceries,” Cobb said.
Tennessee Governor Bill Lee announced back in March that he would propose a food tax holiday in the 2022-23 fiscal year. That proposal became an official announcement in June.
“We thought that it was most important that we roll back the food tax because that affected Tennesseans directly, as opposed to some taxes that might benefit folks from other states,” Lee said.
When asked why to take money out of the government now, given the state of the economy, Lee defended his actions.
“Families come back from vacations, they start back up to school in August, and, oftentimes, some of their greatest expenses occur then,” he said. “So, there would be a sense that that would be the greatest benefit to occur in all this.”
Although it may take some money out of the economy, it’s easy to understand the impact it has on families in Tennessee.
“It is a big impact,” Cobbs said. “Hopefully, it’ll stay. Like it’ll never go back.”
The holiday starts on August 1st. It includes, ‘food and food items,’ but not alcoholic beverages, tobacco, candy, dietary supplements, and prepared food.