Williams: 30-Day Grocery Tax Suspension Needed But Could Be Longer

State Representative Ryan Williams said he believes that the state is fiscally strong enough to offer more than a 30-day grocery tax suspension.

Governor Bill Lee proposed a budget amendment that would allow a 30-day suspension of state and local grocery sales tax as a relief for citizens.

“I am in support of it,” Williams said. “I feel like the biggest challenge is it’s for a short period of time. It would be very difficult unless someone was purchasing food to freeze to really make a big impact in savings for families, but I do think it is the right way to do it.”

Williams said the budget amendment needs General Assembly approval before implementation. William said as proposed, local tax shares will remain whole with $81 million budgeted to make up the loss.

“By not charging these sales tax dollars, the local community won’t be hurt, so that’s always a good thing,” Williams said. “Sometimes when we cut taxes it takes money away from the local. In this case it won’t.”

Williams said the reason why he suggests a longer suspension is based on the state’ sales tax collections. Williams said the state over collected sales tax by more than $1.4 billion.

“Most homes are spending about $200 a week in groceries as it relates to that, so when you take in consideration of the sales tax, it’s a little bit of money but not a whole lot,” Williams said. “I guess my only thought was maybe we should look at doing it for a longer period of time, because of the cost of inflation and rising gas prices.”

Lee’s proposal will be delivered on Tuesday. “I want to say thanks to the Governor for thinking about Tennessee families,” Williams said.