Taxes, Sales - As introduced, exempts the retail sale of fresh fruit and vegetables for human consumption from the food retail sales tax. - Amends TCA Title 67, Chapter 6.

SB 2254 exempts the retail sale of fresh fruits and vegetables for human consumption from Tennessee's 4% food retail sales tax, effective July 1, 2026. This change directly affects grocery stores, farmers' markets, and other retailers selling fresh produce, as they will no longer collect sales tax on these items. The bill amends Tennessee Code Annotated § 67-6-228 to create this specific exemption under the tax code. It does not alter taxes on other food items or ingredients, which remain subject to the standard 4% rate.