Taxes, Sales - As introduced, exempts from the state sales and use tax the retail sale of food and food ingredients. - Amends TCA Title 57, Chapter 3 and Title 67, Chapter 6.

HB 1530 would exempt groceries and food ingredients from Tennessee's state sales tax starting July 1, 2026, meaning consumers would no longer pay tax on these items at checkout. It directly affects grocery stores, restaurants, and other food retailers, as well as shoppers purchasing food, while modifying tax revenue distribution by removing a 0.5% education earmark and creating new local funding allocations based on exempt sales. Key provisions include revising tax code definitions to clarify what qualifies as "food," adjusting business tax requirements for food retailers, and ensuring counties/municipalities receive equivalent funding based on historical tax revenue from food sales. The bill does not change the overall tax rate but shifts how revenue is allocated.