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City's Share of the State Beer Tax

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Reviewed Date: June 19, 2017

Original Author: 
Hemsley, Sid
Date Created: 
Aug 15, 1997


Subjects:
Alcoholic beverages
Alcoholic beverages--Laws and regulations
Beer
Beer--Laws and regulations
Taxes--Beer
Taxes--State shared

City's Share of the State Beer Tax

Summary: 
MTAS was asked whether a city can prohibit the sale of beer and if that decision would jeopardize the city's share of the state beer tax.

Knowledgebase-City's Share of the State Beer TaxAugust 15, 1997

You have the following questions:

1. Can the city legally prohibit the sale of beer? Yes.

2. If the city does not permit the sale of beer, does that decision jeopardize the city's share of the state beer tax? No.

Question 1

Tennessee municipalities clearly have the authority to permit, or to entirely prohibit, the sale of beer. However, the prohibition or the permission, whichever the case may be, should be expressed by ordinance. In the latter case the ordinance should regulate the conditions under which beer can be sold. Municipalities have considerable authority to regulate the time, place and manner of the sale of beer. I will be glad to provide you more information in that area if you choose. However, as I understand it, the city wants to entirely prohibit the sale of beer. I have drafted a simple ordinance that accomplishes that goal.

Question 2

All cities in Tennessee under Tennessee Code Annotated, section 57-5-205, receive a share, on a per capita basis, of the per barrel tax on the manufacture, transportation and sale of beer. Whether or not any particular municipality allows or permits the sale of beer has nothing whatever to do with its share of the per barrel tax under that statute.

Let me know if I can help you further in this or any other matter.



Sincerely,



Sidney D. Hemsley
Senior Law Consultant

SDH/


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MTAS letters and publications were written based upon the law at the time and/or a specific sets of facts. The laws referenced in the letters and publications may have changed and/or the technical advice provided may not be applicable to your city or circumstances. Always consult with your city attorney or an MTAS consultant before taking any action based on information contained in this database.