Consumers Happy about Grocery Tax Cut

(WVLT) - Part of the new state budget means a big break on your pocketbook.

Lawmakers voted to reduce the sales tax on groceries.

Volunteer TV's Whitney Daniel spent the evening at the grocery store to see what customers think about the decision.

Even though it's small change, it adds up to more change in your pocket when you leave the supermarket.

"I probably spend over a hundred a week on groceries," says Linda Arden.

"This is just a good way to get a little bit of the money back into the working folks of Tennessee, who pay for it," says State Senator Tim Burchett.

After a vote from the state legislature, the sales tax on food in Tennessee will drop one half cent, from 6% to 5.5%.

"I'm glad that it's going down," says shopper Debby Hagar.

"I think it's wonderful," said Barbara Bolen.

"The reality is that we've just over taxed our population and the only way you can give it back is in the form of sales tax relief," says Burchett.

And shoppers say they are just relieved to see something done about the high tax.

"Any reduction in tax on food is excellent. It's a necessity in life and I don't rally think there should be tax, so this is the first step in the right direction," says Hagar.

The change still ranks Tennessee among the highest in the nation, but now the volunteers place third, down from first.

Customers at Butler & Bailey's Market say they don't think municipalities will follow suit by reducing their 2-2.75% portion of the tax.

"You have to buy food, so they are making money from the government somehow," says Jason Sanderson.

The reduction will save you about 50-cents on every hundred dollars worth of groceries.

This is the first time the tax had been reduced.

Before, the legislature raised the sales tax for other items and left the food tax at 6%.

The new rate takes effect July first.


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