Your MoneyThursday, November 5
Davidson County's local sales tax on eligible groceries dropped to 1.75% on Nov. 1
The Daily Hendersonville team
If you shop for groceries in Davidson County, your receipt got a little lighter Sunday, Nov. 1. The local sales tax on eligible groceries fell from 2.25% to 1.75%, about 22% off the old local rate. Tennessee's 4% state tax on food stays, so the combined rate is now 5.75%, down from 6.25%.
Davidson County's local grocery tax rate dropped by half a point
| Before Nov. 1 | Measure | Since Nov. 1 |
|---|---|---|
| 2.25% | Local rate on eligible groceries | 1.75% |
| 6.25% | Combined state and local rate | 5.75% |
Source: WZTV
The Metro Council approved the cut in June, after a state law enacted in May let metro governments lower the local food tax. Mayor Freddie O'Connell's office estimates the change will provide between $8 million and $9 million a year in relief. The Tennessee Tribune says the cut will provide $9 million in annual relief.
- Covers: food and food ingredients under state law
- Doesn't cover: every item sold in a grocery store
- Metro budget analysis: $9.2 million less revenue over 10 months
50 centsless in local tax for every $100 spent on eligible groceries
That's what the half-percentage-point cut works out to at the register.
Source: WZTV
Sources: WZTV, The Tennessee Tribune