Tennessee House simplifies taxation and regulation of micro markets; NAMA hails passage of HB 367

The Tennessee House passed a bill that clarifies the taxation, licensing and inspections of self-checkout micro markets operated in the state.

House Bill 367 adds definition to "micro market," "micro market display" and "unattended" for purposes of sales and use taxes. It authorizes owners and operators of micro markets in multiple locations to submit to the state’s department of revenue a single, monthly sales tax return and payment from sales made at all markets.

According to the bill’s text, “micro market" means an unattended food establishment that includes one or more micro market displays; has a kiosk or other electronic payment device for self-checkout; has controlled entry not accessible by the general public; and provides commercially prepackaged and ready-to-eat foods.

“Passage of HB 367, formally defining micro markets, provides much-needed simplification for convenience services operators in Tennessee,” said Mike Goscinski, senior director of external affairs of the National Automatic Merchandising Association. “The bill ensures that unattended retail locations or ‘micro markets’ are not subjected to onerous licensing and inspection regulations that are intended for restaurants and establishments that prepare food on site.”

Goscinski praised the Tennessee Automatic Merchandising Association, along with the State House, Senate and Gov. Bill Lee, for supporting the bill’s passage.

“We are pleased to see continued momentum since obtaining a national definition of micro markets in the Food and Drug Administration’s Food Code in December 2019,” the NAMA official said.

“But many states across the nation are still struggling with defining micro markets, determining registration fees and formalizing health inspection standards,” Goscinski continued. “We look forward to continuing to work with state legislators on similar measures that provide clarity for businesses and protect food safety.”