Rules & Regulations of the State of Tennessee
Title 1320 - Revenue
Subtitle 1320-04 - Miscellaneous Tax Division
Chapter 1320-04-06 - Local Option Liquor Rules
Section 1320-04-06-.03 - BOND AND REPORTS REQUIRED

Universal Citation: TN Comp Rules and Regs 1320-04-06-.03

Current through September 24, 2024

(1) Bond of Wholesaler - Any wholesaler beginning business on or after July 1, 1970, shall be required to file with the Commissioner of Revenue a cash or surety bond with a solvent company qualified to do business in this state, in an amount no less than $75,000 for an initial period of four (4) months and at the end of such period, the bond shall be adjusted for the balance of the twelve (12) month period or until the following July 1, whichever occurs first, in an amount no less than one hundred ten percent (110%) of the average monthly tax liability incurred during the initial four (4) full months period engaged in business. If at July 1, following beginning of business any wholesaler shall have engaged in business for less than twelve (12) full months, he shall ascertain the amount of his renewal bond for the ensuing year by dividing his total tax liability incurred during such period by the number of months he has engaged in business to arrive at his monthly average tax liability. This amount shall then be multiplied by one hundred ten percent (110%) to arrive at the amount of bond to be posted for the ensuring year.

(2) Wholesaler Reports.

(a) Each wholesaler on or before the 15th day of each month shall file with the Tennessee Department of Revenue a recapitulation of all business transacted for the preceding month on forms prescribed by the department. Incomplete or altered returns shall be deemed to be delinquent and susceptible to statutory penalty the same as failure to make a return.
1. All returns, as required in (a) above, shall state amounts of all alcoholic beverages in terms of the metric system of capacity measurement as follows:
(i) 1.000 milliliters = 1 liter

2. All alcoholic beverages in containers having a capacity measured only in U.S. measure which are disposed of after the effective date of this rule shall be converted to metric capacity measurement for the purpose of reporting the disposition of such beverages to the Department of Revenue and paying tax thereon.
(i) In order to convert an amount of alcoholic beverages disposed of from U.S. capacity measure to metric capacity measure for the purpose of reporting such disposition to the Department of Revenue, the amount of alcoholic beverages requiring conversion which are disposed of during a reporting period shall first be converted to gallons and the resulting number of gallons, or portion thereof, shall then be multiplied by the conversion factor of 3.7854.

3. All alcoholic beverages in containers either having a capacity measured both in U.S. capacity measure and metric capacity measurement or having a capacity measured only in metric capacity measurement which are disposed of after the effective date of this rule shall be reported and taxed on the basis of the metric capacity measurement indicated on the container.

4. All amounts required to be entered on returns submitted to the Department of Revenue shall be computed to four (4) decimal places. The actual payment of the amount of tax shown to be due on the return, however, should be rounded to the nearest cent.

(b) Each wholesaler on or before the 15th day of each month shall file with the Tennessee Department of Revenue a report covering the sale of alcoholic beverages made by him during the preceding month and enclose payment of tax at the rate of 15¢ per case required by T.C.A. § 57-6-201. For purpose of assessing the tax, a case is deemed as set out in rule 1320-4-6-.04 following. Incomplete or altered returns shall be deemed to be delinquent and susceptible to statutory penalty the same as failure to make a return.

(c) Each wholesaler shall also submit the reports required by rules 1320-3-.15(1) and 1320-3-.15(3).

Authority: T.C.A. §§ 57-3-303, 57-3-307 and 67-1-102.

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