Home Hendersonville Hendersonville Leaders Pass First Reading of Ordinance to Lower Grocery Sales Tax

Hendersonville Leaders Pass First Reading of Ordinance to Lower Grocery Sales Tax

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UPDATE: June 12, 2024 – At the June 11 BOMA meeting, Hendersonville leaders discussed an ordinance to lower grocery sales tax. On its first reading, leaders unanimously passed the ordinance. The ordinance has to be voted on for a second time to be officially instated.

Background on this ordinance:

By way of referendum, the Hendersonville voters passed the Hendersonville Investment in the Future Act, a ½ cent sales tax increase. The ½ cent increase raises the city’s sales tax rate from 2.25% to 2.75%, for a total sales tax rate (city and state) from 9.25% to 9.75% and expires “sunsets” in 10 years. The new sales tax rate went into effect June 1, 2024. The city sales tax increase applies uniformly to all taxable items, including groceries.

However, the Board of Mayor and Alderman expressed a desire to exempt groceries from the sales tax increase, subsequently the General Assembly passed legislation allowing local government agencies to lower sales tax on groceries.

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Original Story: Last month, Tennessee lawmakers passed a bill that would allow local governments to reduce grocery sales tax.

Now, lower sales tax on groceries could become a reality for Hendersonville residents.

The first reading of ordinance to decrease the local option sales tax rate on the purchase of groceries from 2.75% to 2.25% in Hendersonville will be discussed at the June 11 board meeting.

If approved, the ordinance has to be voted on for a second time to be officially instated.

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