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-.06 - TAX ON INTRODUCTION OF BRANDS

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

Current through September 24, 2024

(1) Every domestic manufacturer and every importer of any brand of alcoholic beverage sold in this state shall, as a condition precedent to the introduction or sale of a brand of alcoholic beverage in this state, pay proper tax on all brands distributed by him in this state file all required documents with the Department of Revenue and meet all other requirements of these rules for registration of brands sold by him.

(2) The privilege tax year shall be from June 1 through May 31 each year. Payment of proper tax and filing of all required documents for registration shall be due May 1 of each year and shall be delinquent after May 31 each year.

(3) Every manufacturer or importer distributing brands of alcoholic beverages in this state as of May 22, 1979, shall, on or before 30 days after these rules become effective, pay the proper amount of brand registration tax to the Department of Revenue and properly register each brand distributed by them. Such initial registration and tax payment shall be effective for the privilege of distributing alcoholic beverages in this state during the privilege tax year of June 1, 1979 through May 31, 1980. The amount of this initial tax payment shall be based on the number of cases of each manufacturer's or importer's brand sold at wholesale in this state during the twelve (12) months immediately preceding June 1, 1979.

(4) After the initial tax payment and registration as set out in paragraph (3), each manufacturer or importer distributing registered brands in this state shall, on or before May 31 of any calendar year, register and pay the applicable amount of tax to the Department of Revenue for the privilege of distributing brands of alcoholic beverages in this state during the next subsequent privilege tax year. In addition to any other penalty provided by law, any manufacturer or importer deficient or delinquent in the payment of any tax on any brand for any tax year shall not be allowed to distribute in this state any brand(s) manufactured or imported by him until such deficiency or delinquency is paid.

(a) Manufacturers and importers distributing registered brands of alcoholic beverages in this state and desiring to cease such distribution shall, in order to avoid additional tax liability, remove, prior to September 1 of the succeeding tax year, to a point outside the state, all containers of such brand(s) held by licensed wholesale distributors in this state. If any containers of any brand(s) of alcoholic beverages are held by Tennessee licensed wholesalers on or after September 1 of any privilege tax year, the privilege of distribution of that brand in this state, upon which the tax is based, shall be deemed to have been exercised, and the tax shall be due. If a manufacturer or importer properly ceases to distribute his brand(s) of alcoholic beverages in this state by removing all containers of such brand(s) from Tennessee licensed wholesalers on or after September 1 of any privilege tax year,- no proportional refund of tax paid for the privilege of operating during such year shall be made.

(b) No licensed wholesale distributor in this state shall order, receive, accept or offer for sale any brand of alcoholic beverages in this state unless such brand has been properly registered and proper tax paid to June 1 of any year. Provided, however, any licensed wholesale distributor in this state selling a properly registered brand of alcoholic beverages, which the manufacturer or importer of such brand desires to discontinue in this state, may continue to sell, through June 30 of the succeeding tax year, any containers of such brand in his possession as of June 1 of such year.

(c) Any containers of alcoholic beverages, on which tax has not been paid or which are not allowed to be distributed in this state because of a deficient or delinquent tax payment, not sold or removed from the state as provided above are contraband and shall be seized and sold by the Department of Revenue pursuant to the provisions of T.C.A. §§ 12-2-201 through 12-2-209. Applicable brand registration tax shall be added to the price of any such goods sold.

(5) Any manufacturer or importer desiring to introduce a brand(s) of alcoholic beverage in this state which has not previously been distributed in this state, shall register such brand(s) and pay tax of $250 for each brand to be registered. The $250 tax payment due on the initial introduction of a brand(s) in this state shall, however, be prorated on the basis of 1/12 of the tax amount for each month or portion thereof remaining in the privilege tax year subsequent to the date of registration.

(a) Any such manufacturer or importer paying a prorated tax amount on his initial registration of a brand(s) in this state shall, for his subsequent first full privilege tax year, pay tax based on the average monthly number of cases of his brand(s) sold at wholesale in this state during his initial partial privilege tax year times twelve (12).

(b) The proper amount of tax due from any manufacturer or importer for any privilege tax year subsequent to such manufacturer's or importer's first full privilege tax year shall be based on total wholesale sales of such person's brand(s) during the twelve (12) months immediately preceding the payment of tax.

Authority: T.C.A. §§ 57-3-301 and 67-1-102.

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