East Tennessee gets ready for grocery tax decrease

6:11 AM, Jun 28, 2012   |    comments
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The state's grocery tax will decrease July 1, but many East Tennesseans might not notice the change.

Sunday, the tax will decrease from 5.5 percent to 5.25 percent. Governor Haslam admitted the lower tax will not help everyone a lot, but he has called it an important first step. Haslam has said he wants to reduce the rate to 5 percent next year.

Phyllis Brown, a Butler & Bailey Market customer said she was unaware of the tax decrease. She told 10News she hopes it will drop even more.

"I was really getting excited about something," said Brown, once she heard the tax will only save her 25 cents for every $100 she spends. "Are you kidding me?"

Right now, grocers like Three Rivers Market in downtown Knoxville said they aren't sure how the tax change will affect business.

"I'm not sure how much this law will impact people's bottom lines but I think it's a good gesture from our legislators," said Katie Ries, marketing director at Three Rivers Market.

The tax will change how some grocers do business, however. Just Ripe in downtown Knoxville said it had to change the tax in its computers in order to make sure the rate would be applied on its products.

According to the law, the tax change will affect all goods with the exception of four things: prepared foods, tobacco, alcohol, or candy.