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Expert: Monthlong Tennessee tax-free holiday could save people about $30

Dr. Bill Fox, an economics professor at the University of Tennessee, said the state could lose about $80 million in revenue in August.

KNOXVILLE, Tenn. — Inflation and the price of getting routine groceries are at a record high. Economic experts like Beverly Moran, a professor at Vanderbilt University, said many people may never have seen anything like it.

“Because, for the last 44 years, we haven't had inflation like this,” said Moran. 

People could save a few dollars in August during a tax-free holiday on several items. During the entire month, food and ingredients in grocery stores across the state will be tax-free.

“I found that in Tennessee, the average household has slightly less than three people and spends about $750 a month on groceries", said Moran. 

She also said that consumers could save about $30 during the tax-free holiday.

"That $30 a month, for some people, is huge. And for some people, it is not that much,” said Mora.

Dr. Bill Fox, an economics professor at the University of Tennessee, said families would see the most benefit from a tax-free holiday, compared to other kinds of consumers. He said the state could lose $80 million in revenue during the August tax-free holiday, but said it should not hurt the economy. 

"You know, hopefully, retailers will understand this is going to take place. They'll recognize that there might be a bit more shopping on August 1,” said Fox. 

Moran said the best way for families to save as much money as possible during the holiday is to plan ahead. 

"If you can save for it and come up with a plan for exactly what it is you want to buy, and maybe that way you can increase the value of it, to you, as an individual," she said.

As soon as the clock strikes midnight on Aug. 1, people can start taking advantage of tax-free groceries. Prepared foods dietary supplements, candy, alcoholic beverages, and tobacco are not included.

A list of the items that won't be taxed is available online.

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