Rules & Regulations of the State of Tennessee
Title 1320 - Revenue
Subtitle 1320-04 - Miscellaneous Tax Division
Chapter 1320-04-01 - Beer and Alcoholic Beverages of Not More Than Five Percent by Weight and Wholesale Tax Act
Section 1320-04-01-.03 - DEDUCTION FOR BEER EXPORTED, DAMAGED, LOST, STOLEN OR DESTROYED

(1) With respect to the tax levied pursuant to Part 2 of Chapter 5 of Title 57 of the Tennessee Code Annotated, it shall be determined that the taxable incident attaches when such beer has come to rest at the wholesaler's premises or warehouse. Provided, however, that a deduction from receipts and purchases shall be allowed persons subject to the tax on their monthly beer tax report submitted in accordance with rule 1320-4-1-.12, with respect to all beer or ale that, within that same monthly period in which said beer or ale has been received or purchased, has been exported from the state. Said deduction shall likewise be available for all beer or ale that has been damaged, lost, stolen, destroyed or otherwise become unsalable while in transit, by either common carrier or wholesaler's own transport equipment, prior to being stored in the wholesaler's warehouse. This is not to be construed to preclude said deduction for beer or ale that has been damaged or become unsalable in transit to the wholesaler's warehouse, when such damage or unsalability was not detected until after the beer was stored in the wholesaler's warehouse or as a matter of expediency and convenience such damaged or unsalable beer was temporarily stored in the wholesaler's warehouse until it could be destroyed or returned to the brewery. Said deduction may not be allowed on beer or ale that has been lost, stolen, damaged or rendered unsalable while in the wholesaler's storage or while in the course of trade after the product has left such wholesaler's storage.

(2) Provided further, that said deduction may be disallowed if said monthly beer tax report is not accompanied with proper proof, satisfactory to the Commissioner of Revenue, showing that the said beer has been exported from the state of Tennessee; or damaged, lost, stolen, destroyed or otherwise become unsalable.