Taxes - As introduced, enacts the "End the Grocery Tax by Closing Corporate Loopholes Act." - Amends TCA Title 57 and Title 67.

HB 2, titled the "End the Grocery Tax by Closing Corporate Loopholes Act," removes sales tax on grocery items sold by retailers meeting specific criteria. The bill exempts food and food ingredients from sales tax (previously taxed at 6%) and adjusts how tax revenue is allocated, ensuring K-12 education funding and local government distributions remain stable despite the tax change. Retailers must derive at least 20% of their sales from grocery items (not just tax-exempt grocery sales) to qualify for the exemption. The law takes effect July 1, 2025, and directly affects grocery retailers, local governments, and education funding mechanisms.