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

SB 2, the "End the Grocery Tax by Closing Corporate Loopholes Act," eliminates the sales tax on groceries (food and food ingredients) for retail purchases, effective July 1, 2025. It removes a provision requiring 0.5% of grocery tax revenue to fund K-12 education and instead mandates that counties and municipalities receive funds based on reported grocery sales. The bill also adjusts the threshold for businesses to qualify for reduced tax rates on non-food items, changing the requirement from 20% of sales from "taxed groceries" to 20% of sales from groceries generally. This directly affects grocery retailers, state education funding allocations, and local government revenue streams.