Haslam proposes food tax cut in budget plan - WMC Action News 5 - Memphis, Tennessee

Haslam proposes food tax cut in budget plan

(WMC-TV) - The state of Tennessee has one of the highest taxes on food in the country, and now the governor is pitching a budget that would lower the rate you pay at the grocery store.

Governor Haslam's budget is expected to call for a reduction of the food tax from 5.5 percent down to 5.25 percent in 2012, and down to 5 percent in 2013.

This would save Tennessee about 18 million dollars this year on their food bill.

Just last year, Arkansas cut their food tax by a half percent - from 2 percent down to 1.5 percent.

Mississippians pay one of the highest taxes on food which is 7 percent, governor Bill Haslam's office said neighboring states are always factored into a decision.

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