Taxes, Sales - As introduced, exempts from the state sales and use tax the retail sale of food and food ingredients. - Amends TCA Title 57, Chapter 3 and Title 67, Chapter 6.

SB 2347 exempts the retail sale of food and food ingredients from Tennessee's state sales tax, directly affecting grocery stores, restaurants, and other food retailers that would no longer collect this tax on qualifying items. Key provisions include removing a 0.5% sales tax earmarked for K-12 education (Section 3) and creating a new funding formula to allocate money to counties and municipalities based on exempt food sales (Section 4). The bill also adjusts definitions to remove references to the previous tax rate for food sales (Sections 8-9). It takes effect July 1, 2026, and does not change how food is taxed under other tax provisions.