(1) The tax rates
as set out at T.C.A. §57-131 shall, for the purpose of paying tax on
alcoholic beverages measured by the metric system of capacity measurement, be
as follows:
(a) $.2906 per liter of
wine.
(b) $1.0567 per liter of
spirits.
(2) Tax
liability shall be based upon adjusted gross sales, other than sales or returns
to wholesalers and/or suppliers, for the preceding calendar month and payment
thereof shall be made on or before the fifteenth (15th) day following such
month.
(3) Adjusted gross sales
shall mean total disposition of alcoholic beverages, less the following:
(a) Sales to other wholesalers.
(b) Returns to distillers or other suppliers,
or exports authorized by suppliers to other than distillers.
(c) Damaged or deteriorated merchandise which
has been destroyed as otherwise provided herein and house breakage on wines and
on distilled spirits on which identification stamps remain identifiable and
federal strip stamp is intact.
(d)
Sales, gifts or distribution of any wine used solely for sacramental
purposes.
(e) Beverages
accidentally damaged or destroyed on business premises by fire or other acts of
nature beyond his control or other accountable losses.
(f) Sales to qualified military installations
of the federal government.
(4) Restrictions on classifying adjusted
gross sales. The following procedure shall be observed in handling and
accounting for tax exempt disposition of alcoholic beverages:
(a) Before tax free sales to other
wholesalers may be consummated, the consignor's records must properly indicate
sales invoices and the consignee's records must indicate receipt of such
merchandise.
(b) Before a
wholesaler may be relieved of tax liability for products returned to distillers
or other suppliers, or exports authorized by suppliers, it shall be the
responsibility of any such wholesaler to furnish the Department of Revenue
with:
1. documentary evidence of authorization
from the supplier for return or export of the specific products by such
wholesaler;
2. a copy of the bill
of lading or similar document regarding such products return or
export;
3. an affidavit from the
person or firm receiving the returned or exported products which includes:
(i) the kind, quality and size or the
products received; and
(ii) for
distilled spirits, that the identification stamps upon those products have been
or will be destroyed or obliterated.
4. documentary evidence from the supplier
that credit has been afforded the wholesaler for the products described in "3"
above.
The documentation for any returned products or exports for
which tax relief is claimed, during any tax reporting month, shall be attached
to a tax return and submitted to the Department of Revenue as part of that
return. No wholesaler may be relieved of tax liability for any products
returned or exported during any month until all required documentation
applicable to such returns or exports is attached to a single tax return and
received by the Department of Revenue.
(c) Before a wholesaler may be relieved of
tax liability for house breakage, it shall be his responsibility to obtain the
assistance of one Department of Revenue representative who will observe the
broken containers for which exemption is being sought and furnish a certificate
stating the quantity and size containers of distilled spirits on which the
identification stamp remains identifiable with the federal strip stamp or
manufacturer's seal intact, and, with reference to wine, furnish a certificate
stating the quantity and size containers on which the crown, cap, seal or cork
remain intact and unbroken. Under no conditions may credit be claimed or given
for tax applicable to broken containers of distilled spirits when the
identification stamp is not identifiable and the federal strip stamp or
manufacturer's seal is not intact; nor shall credit be allowed in any instance
when the size of the original container cannot be definitely determined. In the
event the wholesaler shall have unsalable merchandise to remove from inventory,
tax credit may be given only when one Department of Revenue representative
witnesses the complete destruction of the contents and the bottles, and makes
certification as required herein for other breakage.
(d) Before tax-free sales of wine for
sacramental purposes may be made, sales invoices applicable to such sales must
be signed by an authorized person designated by a letter from an official of
the church or synagogue receiving the wine and such authorized person's
signature must be filed at the same time with the Department of Revenue as a
matter of record.
(e) Before a
wholesaler may be relieved of tax liability for beverages accidentally damaged
or destroyed on business premises by fire or other acts of nature beyond his
control or other accountable losses, the wholesaler shall be required to
furnish documentary evidence by which the Department of Revenue may reasonably
determine that a specific loss has occurred.
(f) Before a wholesaler may be relieved of
tax liability for products sold to a fort, base, camp or post of the armed
forces of the United States or post exchange, ship-service store, commissary or
mess operated by the US. armed forces, the following conditions shall be
required:
1. The commanding officer of a
qualified military installation has furnished the Commissioner of Revenue a
letter designating an officer or civilian employee who possesses managerial
authority over the post exchange, ship service store, commissary or mess as a
person authorized to sign invoices acknowledging receipt of such products
within the military installation with respect to which alcoholic beverages tax
credit is being sought and such letter has been signed by the commanding
officer. The signature of such designated officer or civilian employee shall be
filed at the same time with the Department of Revenue as a matter of
record;
2. The officer or civilian
employee designated in each instance, as provided in "1" above, has signed each
invoice acknowledging receipt of the products and also signed a certificate as
prescribed by the Commissioner of Revenue summarizing all receipts of such
products during a given month and certifying that the products were sold to,
and delivered to a post exchange, ship-service store, commissary, mess or other
such exempt agency, by a Tennessee wholesaler and that said products will be
sold by such instrumentality of the government for consumption within the
geographical boundaries of the government installation subject to regulations
by the commanding officer of such installation;
3. A copy of all such sales invoices and the
applicable certificate both duly signed as required in "2" above, shall
accompany the monthly report to substantiate any credit being sought, otherwise
the wholesaler shall be liable for tax applicable to such products.
(5) Each Tennessee
licensed wholesaler must include in his inventory merchandise in an amount
equal only to that merchandise which was actually received. In such instances
where a shipment received is less than the stated amounts on the invoice, an
exception report from the common carrier shall be filed with the monthly report
to substantiate any difference in actual receipt quantities and stated invoice
quantities. Inventories may be adjusted accordingly contingent upon the
wholesaler furnishing the department within ninety days from date of receipt of
shipment evidence of payment for such shortage by the carrier or insurance
company. Otherwise, the wholesaler shall be liable for tax applicable to total
invoiced quantities.
