Taxes, Exemption and Credits - As introduced, exempts the retail sale of food and food ingredients from the sales and use tax when sold on the fifth day of any month. - Amends TCA Title 67, Chapter 6.

SB 1695 exempts the retail sale of food and food ingredients from Tennessee's sales tax when sold between 12:01 a.m. and 11:59 p.m. on the fifth day of every month. This applies to most grocery stores and food retailers but excludes sales from micro markets, vending machines, or devices. The exemption takes effect July 1, 2026, and directly affects businesses selling eligible food items on that specific day each month. The bill amends Tennessee Code Annotated Title 67, Chapter 6, modifying tax collection rules for food retailers.