Tennessee Gov. Bill Lee proposes 30-day grocery tax suspension amid 'historic' inflation

Gov. Bill Lee announced a proposal for a 30-day suspension on state and local grocery sales tax as inflation rates continue to soar across the nation. 

Lee announced the move in news release from early Thursday morning. 

“As Americans see their cost-of-living skyrocket amid historic inflation, suspending the grocery tax is the most effective way to provide direct relief to every Tennessean,” Lee said in the release. “Our state has the ability to put dollars back in the pockets of hardworking Tennesseans, and I thank members of the General Assembly for their continued partnership in maintaining our fiscally conservative approach.”

His proposal will be included in a budget amendment for the Fiscal Year 2022-2023, set to be delivered on March 29, the release said. Lee is set to host a roundtable with business leaders in Covington today. He plans to discuss the proposal and hear about the local impact of the nation's economic challenges, according to the release.

The move comes after two Democratic state lawmakers called on Lee to freeze the state's collection of gas and diesel taxes for 90 days for the "benefit of Tennessee's working families."

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Reps. John Ray Clemmons and Bo Mitchell, both of Nashville, sent Lee's office a letter on March 8, asking the governor to implement an executive order or push legislation on the moratorium. 

Lee said he would review the proposal but was noncommittal when asked if he was considering taking action. 

"That proposal that was made yesterday, we'll certainly look at it," Lee said on March 9.

On Thursday, Clemmons reacted to Lee's announcement on Twitter, criticizing Lee's inaction on the gas and diesel tax proposal.

"So he tries to save face by pivoting to a tax that Dems have been fighting to cut/repeal for (years)," Clemmons said in the tweet.

Clemmons said Lee and his administration also struck down a bill Clemmons proposed less than a month ago to make fruit and vegetables tax free in Tennessee. 

Melissa Brown contributed to this story.

Find reporter Rachel Wegner at rawegner@tennessean.com or on Twitter @rachelannwegner.