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A resolution reducing the local sales tax on the sale of groceries.
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WHEREAS, pursuant to the 1963 Local Option Revenue Act, Tenn. Code Ann. §§ 67-6-701, et seq. (the “Act”), the Metropolitan Council previously enacted Ordinance No. O65-464 as amended by Ordinance No. O68-525 and Resolution No. R80-360, levying a local option sales and use tax in Davidson County at the current rate of two and one-quarter percent (2.25%) on the same privileges that are subject to the State of Tennessee sales and use tax; and,
WHEREAS, the Tennessee General Assembly recently enacted HB2186/SB2160 amending the Act to authorize counties with metropolitan forms of government to reduce or exempt food and food ingredients (e.g., groceries) from the local option sales and use tax by resolution, not requiring further voter approval by referendum; and,
WHEREAS, upon receipt by the Tennessee Department of Revenue of a certified copy of such resolution, the reduction or exemption takes effect either on October 1, 2026, or the first day of the month occurring at least sixty (60) days after the department has received the certified resolution, whichever occurs later; and,
WHEREAS, the Metropolitan Council finds it to be in the best interests of the Metropolitan Government to reduce the local option sales and use tax by one-half percent (½%) on food and food ingredients to a rate of one and three-quarters percent (1.75%) on such sales in Davidson County.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. That Ordinance No. O65-464 as amended by Ordinance No. O68-525 and Resolution No. R80-360 is hereby further amended to reduce the levy of the local option sales and use tax in Davidson County to one and three-quarters percent (1.75%) on food and food ingredients, as described in Tennessee Code Annotated § 67-6-228(a).
Section 2. That upon this Resolution taking effect, the Metropolitan Mayor, or his designee, shall forthwith cause the submittal of a certified copy to the Tennessee Department of Revenue.
Section 3. That this Resolution shall take effect upon HB2186/SB2160 becoming law, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.