The Tennessee legislature will consider measures to cut grocery sales taxes in 2027, but the Senate’s nominee to be next speaker gave the idea a lukewarm reception, despite acknowledging that people are struggling with “affordability.”
Sen. Jack Johnson of Franklin, selected Tuesday by the Senate Republican Caucus to be the new speaker, said afterward the legislature has looked at sales tax breaks, including several bills to cut the 4 percent grocery tax, in recent years and he expects to “have that question again.” He did not say whether he endorses it.
“Affordability is a real concern. It’s a real issue out there,” Johnson said. He added that despite limitations at the state level, the Senate will look at ways to make “incremental improvements to affordability issues.”
Johnson made the statement after outgoing Senate Speaker Randy McNally said during Tuesday’s caucus election that the Iran war and high gas prices led to a wave of Democratic wins nationally. Johnson said he heard those concerns on the campaign trail this fall.
Republicans such as Rep. Todd Warner of Chapel, now-former Rep. Elaine Davis of Knoxville and Sen. Bo Watson of Hamilton County, chairman of the Senate finance committee, sponsored bills in the 2026 session to reduce the state’s grocery tax, but they weren’t taken seriously.
Democratic Rep. Aftyn Behn and Sen. Charlane Oliver, both of Nashville, carried a bill this year to remove the grocery sales tax and replace the lost revenue by collecting a corporate minimum tax generating $900 million. They said their argument was backed by a state report showing Tennessee’s most profitable companies are avoiding taxes.
Republicans who hold super-majorities in the House and Senate didn’t give the Behn-Oliver bill a chance to pass.
House Speaker Cameron Sexton introduced a bill this week to cut the sales tax on milk, eggs and bread. It could see changes as the session progresses.
Behn said in a text message she plans to introduce another bill next week to remove the sales tax on groceries.
Cutting the state’s portion of the grocery tax would cost the state about $800 million, and eliminating it entirely would take about $1.2 billion of state and local tax revenue.
State officials, though, are projecting a billion-dollar surplus, on top of a $1.2 billion surplus in collections last year.
