Tennessee Gov. Bill Lee signed a tax cut Thursday that is estimated at $412 million, with $272.8 million of that attributed to a three-month grocery tax holiday.
Lee’s office called it the single-largest tax cut in state history.
The grocery tax holiday will start Aug. 1 and run through Oct. 31.
“Tennessee’s legacy of responsible fiscal stewardship has allowed our state to weather national economic storms while maintaining a balanced budget and cutting taxes for Tennesseans,” Lee said in a statement. “We thank the General Assembly for partnering with us to make the right investments for Tennessee families and businesses while supporting our state’s future economic growth and success.”
The bill includes changing the state franchise and excise taxes to single sales factor taxes like 32 other states. Those taxes are based only on a business’s sales within the state of Tennessee. It will be phased in over three years.