Haslam signs grocery tax reduction into law

Governor Bill Haslam signed a bill reducing the statewide grocery tax into law on Monday.

Gov. Bill Haslam signs grocery sales tax reduction at Sloan's Grocery in Vonore, TN. Frame taken from video footage. (Lorena Estrada / WVLT)

VONORE, Tenn. (WVLT) -- Governor Bill Haslam signed a bill reducing the statewide grocery tax into law on Monday.

The sales tax on groceries will be 5%, down from 5.25%, when the legislation goes into effect on July 1st.

Haslam visited Sloan's Grocery in Vonore for a ceremonial signing.

In a statement released by the Governor's office, Haslam said, “We’re lowering taxes and balancing the state budget by managing conservatively, making strategic investments in our priorities and finding new ways to make government more efficient and effective,” Haslam said. “The sales tax on food impacts all Tennesseans, and I applaud the General Assembly for passing this important piece of legislation this year.”

Knoxville State Representative Ryan Haynes was one of the bill's sponsors.

$23 million was added to the 2013-2014 to fund the reduction.

The new sales tax does not apply to restaurant meals, candy, alcohol or tobacco.

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