The measure was approved 87-2 in the House on Wednesday. The Senate approved it 30-1 earlier this week.

Tennessee’s beer taxes outstrip any other state’s because the bulk of the levy is based on price rather than volume. The more a beer costs, the higher the taxes that must be paid to buy it.

In Tennessee, brewers pay federal and state taxes per 31-gallon barrel, and then a 17 percent tax is charged to wholesalers based on price. Consumers then pay as much as 9.75 percent in sales taxes on top of the previous charges.

The proposal would convert the 17 percent tax to a flat tax in line with the current rate.

Source: http://www.tennessean.com/viewart/20130411/BUSINESS01/304110071/Measure-freeze-TN-beer-tax-heads-governor

A proposal to change the way taxes are levied on wholesale beer sales cleared the House this week, sending it to the desk of Gov. Bill Haslam. On Monday, the bill was approved in a Senate vote.

The Beer Tax Reform Act of 2013 would change the structure around the state’s 17 percent tax on beer to based on volume rather than price. Proponents of the bill say the current setup, which makes for some of the highest beer taxes in the nation, hurts smaller brewers that sell higher-priced beers.

Under current law, Tennessee gets 17 percent of the beer sold by brewers to wholesalers, based on price. Customers then pay as much as 9.75 percent in sales tax on top of the previous charge, according to an Associated Press report. By changing to a flat 17 percent tax per barrel of beer, purchases of higher-priced brews by wholesalers would be more accessible.

Most states abide by a similar structure.

Source: http://www.nooga.com/161010/beer-tax-reform-clears-state-house/

Source: http://stevelovesmusicscience.com/2013/04/12/fix-the-beer-tax-bill-passed-tn-house-and-senate/

if you don’t have plans for the night of april 23rd, bosco’s announced its annual brewmasters dinner the other day and the menu looks delicious! nick and i went last year and we’ll be going again this year. i’m especially excited about the wasabi shrimp entrée, and what do you know, it’s served with my favorite type of beer! seats will fill up fast if they haven’t already, so call and reserve your spot now!

and lastly, in house news, nick and i will start moving boxes in the last week of april and we’ll move our furniture in may 1st! i’ve got big plans for decorating our new place and nick has already made a big purchase which will be put to good use for the first time when we have a housewarming party —  so stay tuned! cheers!

Source: http://hoppyeverafter.wordpress.com/2013/04/11/weve-fixed-the-beer-tax/

The reform proposal to fix the highest beer tax in the nation has drawn statewide support from every level of Tennessee’s beer industry, from large brewers such as Anheuser-Busch and MillerCoors to craft brewers and beer wholesalers. As the spotlight heated up on state lawmakers, it also caught the support and attention of a national audience.

“This tax reform makes Tennessee more appealing to business,” said Rich Foge, president of the Tennessee Malt Beverage Association. “It will attract new brewers to the state, as well as help those already here to expand and create additional jobs.”

Senate Bill 422 and House Bill 999, sponsored by Representative Cameron Sexton (R-Crossville) and Representative Brian Kelsey (R-Germantown), will convert Tennessee’s outdated price-based tax to a more business-friendly volume based tax. Currently, Tennessee has the highest beer tax rate in the nation, propelling higher and higher every year with inflation.

“When it came down to it,” said Senator Ken Yager (R- Harriman) on the Senate floor Monday, “this vote was about whether or not Tennessee would become competitive in one of the country’s fastest-growing industries.”

Tennessee leads all other states’ beer tax rate by a 12 percent margin. In comparison to our neighbors, Arkansas’ tax per barrel rings up at $7.51 and Mississippi’s at $13.23, while Tennessee tops out at a whopping $37 per barrel.

“In a historically low tax state, Tennessee’s 1950s era triple layer beer tax has been no friend to businesses,” said Sexton. “Whether you are a small brewery or a large scale operation, the tax has hindered expansion and recruitment as well as punished growth. It was simply time for a change in the tax structure and everyone involved is honored to have enjoyed such sweeping support.”

Since the bill’s introduction, more than 2,000 supporters of the grass-roots Fix the Beer Tax Campaign rallied in Chattanooga, Knoxville, Nashville, Memphis and Tri-Cities, resulting each time in a flurry of social media and support from local businesses.

“This is also a victory for Tennessee consumers who will benefit from more selection in the marketplace as more beer brands become available as a direct result of this new tax structure,” Foge added.

The bill will now head to the Governor’s desk for a signature, as the statewide sound of clinking glasses swells in a toast to Tennessee’s brighter future.

Source: http://www.beermakesthree.com/2013/04/11/fixthebeertax/

Source: http://www.nashvillebeerblog.com/2013/04/beer-tax-reform-act-headed-to-governors.html

Tennessee General Assembly passes Beer Tax Reform Act of 2013

     NASHVILLE, Tenn. – The Tennessee General Assembly voted Wednesday to approve the Beer Tax Reform Act of 2013. The near unanimous vote in both the House and Senate only added to the excitement surrounding a campaign deemed a legislative sensation.

The reform proposal to fix the highest beer tax in the nation has drawn statewide support from every level of Tennessee’s beer industry, from large brewers such as Anheuser-Busch and MillerCoors to craft brewers and beer wholesalers. As the spotlight heated up on state lawmakers, it also caught the support and attention of a national audience.

“This tax reform makes Tennessee more appealing to business,” said Rich Foge, president of the Tennessee Malt Beverage Association. “It will attract new brewers to the state, as well as help those already here to expand and create additional jobs.”

Senate Bill 422 and House Bill 999, sponsored by Representative Cameron Sexton (R-Crossville) and Representative Brian Kelsey (R-Germantown), will convert Tennessee’s outdated price-based tax to a more business-friendly volume based tax. Currently, Tennessee has the highest beer tax rate in the nation, propelling higher and higher every year with inflation.

“When it came down to it,” said Senator Ken Yager (R- Harriman) on the Senate floor Monday, “this vote was about whether or not Tennessee would become competitive in one of the country’s fastest-growing industries.”

Tennessee leads all other states’ beer tax rate by a 12 percent margin. In comparison to our neighbors, Arkansas’ tax per barrel rings up at $7.51 and Mississippi’s at $13.23, while Tennessee tops out at a whopping $37 per barrel.

“In a historically low tax state, Tennessee’s 1950s era triple layer beer tax has been no friend to businesses,” said Sexton. “Whether you are a small brewery or a large scale operation, the tax has hindered expansion and recruitment as well as punished growth. It was simply time for a change in the tax structure and everyone involved is honored to have enjoyed such sweeping support.”

Since the bill’s introduction, more than 2,000 supporters of the grass-roots Fix the Beer Tax Campaign rallied in Chattanooga, Knoxville, Nashville, Memphis and Tri-Cities, resulting each time in a flurry of social media and support from local businesses.

“This is also a victory for Tennessee consumers who will benefit from more selection in the marketplace as more beer brands become available as a direct result of this new tax structure,” Foge added.

The bill will now head to the Governor’s desk for a signature, as the statewide sound of clinking glasses swells in a toast to Tennessee’s brighter future.

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The Beer Tax Reform Act of 2013 seeks to reform the 17% beer wholesale tax in Tennessee, which contributes to the state having the highest beer taxes in the nation.

Instead of the present 17% tax on the wholesale price, the bill would revise it to instead impose a tax of $35.60 per barrel of 31 gallons of beer sold. The tax upon barrels containing more or less than 31 gallons would be taxed at a proportionate rate.

The “Fix the Beer Tax” coalition, which is lobbying for passage of the law, is is being spearheaded by the Tennessee Craft Brewers Guild and Tennessee Malt Beverage Association.

Source: http://fuzzybrew.com/2013/04/tennessee-senate-passes-beer-tax-reform-act-of-2013-house-to-vote-wednesday/

The Tennessee Malt Beverage Association actively lobbied for the bill with its Fix The Beer Tax campaign. A press release from January identified the changes as follows:

—

Tennessee’s beer tax is a combination of three taxes. Federal and state excise taxes are calculated by volume, and then a 17-percent local wholesale tax is calculated on price. (Later, at the cash register, consumers pay the additional sales tax.) So, for brewers and wholesalers, when costs such as fuel, labor and materials go up, the beer tax climbs ever higher.

The Tennessee Beer Tax Reform Act of 2013 addresses this situation by proposing that like 48 other states, Tennessee bases its beer tax on volume. (Kentucky also has an added wholesale tax, though the Bluegrass State’s rate is considerably lower than Tennessee’s and its effective rate is $23.96.) The Tennessee reform proposal is revenue neutral because it maintains the wholesale tax revenues at current levels, while slowing the explosive growth in revenues created by a price-based model that dates to 1954.

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Proponents of the bill argued that Tennessee has exorbitantly higher taxes than other states, “currently 12 percent higher than even Alaska.”

Only Senator Mae Beavers voted against the bill on Monday.

The changes take effect as soon as the governor signs the bill.

Source: http://beerpulse.com/2013/04/tennessee-passes-comprehensive-bill-that-will-reform-tax-140/