Legislation was recently signed into law in Tennessee that adopts a new sales tax holiday that will take place from July 30 to August 5. During this period, purchases of food, food ingredients, and prepared food products will be exempt from sales tax. Under Tennessee law, “food and food ingredients” are broadly defined to include substances that are consumed by individuals for their taste or nutritional value and are typically sold by grocery stores. Items that are excluded from the definition of “food and food ingredients” and which will remain taxable during the holiday are alcoholic beverages, tobacco, candy, and dietary supplements.
Source: KPMG
