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Wholesale Beer Tax

Reference Number: MTAS-1855
Reviewed Date: 11/23/2022

Revenue Class: Local Taxes

Fund: General

Account No.: 31710

Description: State authorized tax on wholesale sales of beer. Wholesale beer deliveries to retail outlets in a city or county are taxed at flat rate of $35.60 per barrel sold. The tax is paid by each beer wholesaler directly to the city or county, and monthly reports on such sales are made to the state Department of Revenue and to each city and county. Of this tax, a wholesaler must remit $.17 to the state for administration and retain $.92 to defray the cost of collecting and remitting the tax. A city should check that tax payments are being received from beer wholesalers serving the area based on deliveries to all retail beer outlets in the city. If there is doubt about administration of the tax, an investigation by the Department of Revenue may be requested.

Authorization: T.C.A. § 57-6-101 et seq. (Wholesale Beer Tax Act)

Requirements or Restrictions: N/A

Current Rate: $35.60 per barrel sold (31 gallons).

Frequency of Payment: Monthly by the 20th.

Late Pay Penalty: City may institute legal action for collection. T.C.A. § 57-6-107(b).

Exemptions: Wholesalers may deduct this amount from their gross receipts tax liability. T.C.A. § 67-4-711 (b)(5). Wholesale sales are tax-free if sold to U.S. armed forces. T.C.A. § 57-6-111.

Collection: Beer wholesalers remit monthly, directly to the municipality on state-prescribed forms.

Use Restrictions: None.