Paying less for groceries-Sales tax decrease among new laws

The long-sought-after sales tax decrease on groceries has finally gone into effect.

Just don’t count on significant savings.

With the start of the new year, some two dozen new state laws are now active, including a reduction of sales tax on groceries from 6 to 5.5 percent.

It won’t amount to much, even in the tightest of household budgets. A family that spends $100 a week on groceries will save about $26 over the course of a year.

‘Every little bit helps,’ said local resident Lee Williamson, who says she spends a fair amount on groceries with a husband and two kids to feed. ‘We buy groceries every week, so saving even a little is good.’

The local option sales tax on food, imposed by cities and counties, will remain the same. In McMinnville, that means the total sales tax on groceries will drop from 9.75 to 9.25 percent.

‘Any kind of a cut is good,’ said local resident Dena Tanner. ‘It could be more, that would be good, but we’ll take what we can get. Groceries are a big percentage of our household budget. We like to eat.’

The half-cent cut in the food tax is estimated to cost the state about $40 million, according to the Tennessee Department of Revenue.

Among other new laws that took effect Jan. 1:

‘ Employers who knowingly hire illegal immigrants can be penalized by having their business license revoked.

‘ Law enforcement officers are now required to take DNA samples from anyone charged with a violent crime. If the person is found not guilty, the sample will be destroyed.

‘ Tax preparers who lend money to customers in anticipation of federal income tax refunds must clearly state their interest rates and fees.

Sales tax drop gives slight savings

‘ Starting yesterday, the statewide sales tax on groceries dropped from 6% to 5.5%

‘ That results in a savings of 50 cents for every $100 spent on groceries

‘ A family that spends $150 a week on groceries will save $39 over the course of a year