(a)

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Terms Used In Tennessee Code 57-5-201

  • beverage: means and includes alcohol, spirits, liquor, wine, high alcohol content beer, and every liquid containing alcohol, spirits, wine, and high alcohol content beer and capable of being consumed by a human being, other than patent medicine or beer, as defined in §. See Tennessee Code 57-3-101
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • gallons: means a wine gallon or wine gallons, of one hundred and twenty-eight ounces (128 oz. See Tennessee Code 57-3-101
  • Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
  • Gift: means and includes the unauthorized distribution of alcoholic beverages by a licensee for which no payment is expected or received. See Tennessee Code 57-3-101
  • Highway: includes public bridges and may be held equivalent to the words "county way" "county road" or "state road". See Tennessee Code 1-3-105
  • Importer: means any person or entity holding a non-manufacturer non-resident seller's permit pursuant to §. See Tennessee Code 57-3-101
  • Manufacturer: means and includes a brewer of high alcohol content beer, distiller, vintner and rectifier. See Tennessee Code 57-3-101
  • Municipality: means an incorporated town or city having a population of:
    (i) Seven hundred (700) or more, according to the 2010 federal census or a subsequent federal census. See Tennessee Code 57-3-101
  • Person: includes a corporation, firm, company or association. See Tennessee Code 1-3-105
  • Retailer: means any person who sells at retail any beverage for the sale of which a license is required under this chapter. See Tennessee Code 57-3-101
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • Wholesaler: means any person who sells at wholesale any beverage for the sale of which a license is required under this chapter. See Tennessee Code 57-3-101
  • Year: means a calendar year, unless otherwise expressed. See Tennessee Code 1-3-105
(1) Every person, firm, corporation, joint-stock company, syndicate or association in this state storing, selling, distributing, or manufacturing such beer or other beverages as are described in this chapter shall pay a special privilege tax, in addition to all other taxes, in an amount equal to four dollars and twenty-nine cents ($4.29) per barrel of thirty-one liquid gallons (31 gals.) stored, sold, distributed by gift or sale or manufactured in this state; provided, that the rate shall be reduced by fifty cents (50¢) on July 1 of any year following the enactment of any state or federal law that imposes mandatory deposits by consumers on beverage containers sold in this state or on July 1, 2028, whichever occurs first. The tax upon barrels containing more or less than thirty-one gallons (31 gals.) shall be at a proportionate rate. Beer or other such beverage manufactured in Tennessee and thereafter exported for sale, distribution or gift, or dispensed gratuitously and consumed on the premises, shall not be included in the measure of the tax liability hereby provided for. The commissioner of revenue is authorized to promulgate rules and regulations for the purpose of securing the exemption hereby given and for the purpose of preventing such exemption from being claimed in the case of beer sold, distributed or given away in Tennessee. The burden shall be on the manufacturer claiming exemption to establish to the satisfaction of the collection officers that the beverage manufactured in Tennessee is exempt under this subsection (a).
(2) Notwithstanding this section or another law to the contrary, any revenue generated from the increase in tax rates from three dollars and forty cents ($3.40) to three dollars and ninety cents ($3.90) must be allocated to the highway fund for the purpose of funding programs for the prevention and collection of litter and trash and matters related to the programs, including special grants for programs described in § 54-1-407. No later than March 31 of each year, the department of transportation shall transmit to the governor, and the speakers of the house of representatives and senate a report listing the programs receiving funds generated by this subsection (a), the amount of funds received by each program, and the purpose for which the funds were spent. This subdivision (a)(2) shall be repealed on July 1 of any year following the enactment of any state or federal law that imposes mandatory deposits by consumers on beverage containers sold in this state or on July 1, 2028, whichever occurs first.
(b) The tax levied in subsection (a) shall be a state tax and no county, municipality or taxing district shall have power to levy any like tax. This tax shall not apply to beverages previously used as a measure of tax under the provisions hereof.
(c) No retail dealer of beer, as defined in § 57-5-101(b), shall purchase beer from anyone other than a licensed wholesaler located in this state, and all such purchases shall be delivered by the wholesaler to the retailer‘s licensed premises only or directly to the retailer at the wholesaler’s licensed premises. No wholesale distributor of beer shall purchase beer from anyone other than a licensed manufacturer, importer, or other wholesaler holding a permit issued pursuant to § 57-5-101, and all such purchases shall be delivered only at a warehouse facility owned or operated by the wholesaler and located within this state. Anyone importing or causing to be imported any beer, as defined in § 57-5-101(b), shall be liable as other wholesale distributors or dealers hereunder.
(d) Anything to the contrary notwithstanding, a retail dealer of beer as defined in § 57-5-101(b) may purchase such beverages directly from a manufacturer located in Tennessee, licensed hereunder, if the sale of such beverages by the manufacturer directly to retailers is authorized by law pursuant to § 57-5-101. Any such self-distribution or sale by a manufacturer of its beer directly to a retail dealer of beer constitutes a wholesale sale for purposes of taxation.
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