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

SB 2511, the "End the Grocery Tax Act," removes the sales tax on groceries and food ingredients in Tennessee starting July 1, 2026. It directly affects grocery retailers (who no longer collect tax on food sales) and state/local governments (which lose this revenue stream and must adjust funding allocations). Key provisions include exempting food from sales tax under Tennessee law, revising how tax revenue previously earmarked for K-12 education is handled, and requiring grocery businesses to maintain at least 20% of sales from food (instead of food taxed at the previous rate). The bill also modifies revenue distribution formulas to ensure counties and municipalities receive equivalent funding based on exempt sales data.