News


Tennessean: Measure to freeze TN beer tax heads to governor

April 15, 2013

A proposal to freeze the state’s beer tax is headed to the governor for his consideration.

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

Nooga.com: Beer tax reform clears state House

April 15, 2013

Tax reform is coming to Tennessee—for 31 gallon barrels of beer.

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/

Steve Cross: Fix The Beer Tax bill passed TN house and senate

April 15, 2013

Raise your pint glasses, steins, and snifters in a toast to the success of TN’s Fix the Beer Tax campaign! On Monday the bill passed the state senate, and on Wednesday it passed the state house. Both were almost unanimous votes. The bill still has to be signed into law by Governor Bill Haslam, but with such widespread support and virtually no opposition whatsoever, he will sign it. TN is now on its way to becoming much friendlier to the craft brewing industry, and no longer will breweries be penalized for making a better quality product. Thank you to all my friends and readers who supported this campaign! Read the full article from the horse’s mouth at the official Fix the Beer Tax website.

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

Hoppy Ever After: We’ve fixed the beer tax!

April 15, 2013

just a short post on this rainy thursday, but it’s great to be able to say that tennessee’s 1950s beer tax has been fixed! the final votes for the beer tax reform act of 2013 took place on monday in the senate (30-1) and on wednesday in the house (87-2). now all it awaits is signature from governor haslam! co-sponsors of the bill, rep. sexton (r-crossville) and rep. kelsey (r-germantown), and the folks behind fix the beer tax have worked tirelessly the past couple of months and it’s great to see all that hard work and campaigning pay off on the first go around. so, cheers to that!

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/

Beer Makes Three: Tennessee’s Antiquated Beer Tax… Fixed.

April 15, 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.

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

Nashville Beer Blog: Beer Tax Reform Act Headed To Governor’s Desk For Signature

April 15, 2013

Today, The Tennessee General Assembly voted to approve the Beer Tax Reform Act, a proposal to fix the highest beer tax in the nation by transforming Tennessee’s 17% tax on beer price at the wholesale level to a flat-rate tax of $35.60 on volume per barrel (31 Gallons).  The bill aims to attract new brewers to the state, as well as help those already here to expand and create more jobs, produce more volume, and therefor raise more tax revenue for the state in an all out win-win scenario.  The bill received support from nearly every facet of the beer community, including Anheuser-Bush, MillerCoors, Tennessee craft breweries, and wholesalers and is now headed to the Governor’s desk for a signature.

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

Tennessee Journal: Workers’ comp, pension bills pass with session’s end in sight

April 15, 2013

Beer tax. The easy passage of the beer tax reform bill
may turn out to be the most remarkable development of
the 2013 session. The measure breezed through the Senate
Monday, 30-1, then won House approval with no discussion
Wednesday, 87-2. Only Sen. Mae Beavers (RMt.
Juliet) and Reps. Richard Floyd (R-Chattanooga)
and Andy Holt (R-Dresden) voted against the bill, which
changes the local wholesale tax from a 17% levy on price
to a flat $35.60 per barrel, or 31 gallons.
The present tax is the highest in the country, and the
new tax will be as well, though over time it may lose that
status unless the legislature increases it. A big problem
for brewers and wholesalers was that while sales weren’t
increasing, the tax burden nonetheless was rising. It was
particularly a problem for craft brewers, which have relatively
expensive products. Nashville-based Yazoo said it
was more profitable to ship its beer to Mississippi than
sell it at home. Proponents of the bill suggested more
micro-breweries would sprout up if the tax were fairer.
The economic argument — supporters sometimes
referred to it as a “jobs bill” — didn’t hurt in a Republican-
dominated legislature. And the industry waged a
substantial grassroots campaign, holding “fix-the-beertax”
rallies across the state, with beer served at each
event, of course.
The natural opponents to the plan, local governments,
which receive about $127 million a year in tax
payments and enjoy the price-based increases, were
under siege on multiple legislative fronts, ranging from
planning commission authority to annexation. Eventually,
the beer wholesalers and the Tennessee Municipal
League negotiated an agreement in which the new tax,
intended to be revenue-neutral, would include a couple
of years of projected growth from the old tax. This gives
local governments statewide about $14 million in extra
beer tax money over the next two years.
For the industry, the $14 million buys a stable tax
burden. Instead of inflating automatically with prices, it
will rise only if lawmakers choose to vote for a tax
increase — something they prefer to avoid.
The federal beer tax per barrel is $18. The state
imposes a $4.29 tax per barrel. The local 17% wholesale
tax applies not only to the price but half of the federal
tax and most of the state tax — a tax on taxes.
The new $35.60-per-barrel tax, combined with the
state tax, will make a state and local levy of $39.89, highest
in the nation. The closest to it is Alaska, at $33.17,
according to the Tennessee Malt Beverage Association.

WE DID IT: Tax Reform Tapped for Tennessee

April 10, 2013

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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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Fuzzy Brew: Tennessee Senate passes Beer Tax Reform Act of 2013; House to vote Wednesday

April 9, 2013

The Tennessee Senate on Monday approved the Beer Tax Reform Act of 2013 by a 30-1 margin. The vote sends the bill to the state’s House of Representatives, which is set to take it up Wednesday.

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/

Beer Pulse: Tennessee Senate passes bill reforming how beer will be taxed

April 9, 2013

(Nashville, TN) – The Tennessee Senate voted 30-1 to pass the Tennessee Beer Tax Reform Act of 2013 on Monday. The vote follows last week’s passage of a related bill in The House of Representatives.

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.

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/

615.242.7656     info@FixTheBeerTax.com     404 James Robertson Parkway, Suite 1605     Nashville, TN 37219