TCA § 57-5-201 — Barrel tax — Retailers to deal exclusively with Tennessee wholesalers and manufacturers. [Certain provisions subject to contingent repeal. See (a)(2).]

Every person, firm, corporation, joint-stock company, syndicate or association in this state storing, selling, distributing, or manufacturing such beer or other beverages as are described in this chapter shall pay a special privilege tax, in addition to all other taxes, in an amount equal to four dollars and twenty-nine cents ($4.29) per barrel of thirty-one liquid gallons (31 gals.) stored, sold, distributed by gift or sale or manufactured in this state; provided, that the rate shall be reduced by fifty cents (50¢) on July 1 of any year following the enactment of any state or federal law that imposes mandatory deposits by consumers on beverage containers sold in this state or on July 1, 2022, whichever occurs first. The tax upon barrels containing more or less than thirty-one gallons (31 gals.) shall be at a proportionate rate. Beer or other such beverage manufactured in Tennessee and thereafter exported for sale, distribution or gift, or dispensed gratuitously and consumed on the premises, shall not be included in the measure of the tax liability hereby provided for. The commissioner of revenue is authorized to promulgate rules and regulations for the purpose of securing the exemption hereby given and for the purpose of preventing such exemption from being claimed in the case of beer sold, distributed or given away in Tennessee. The burden shall be on the manufacturer claiming exemption to establish to the satisfaction of the collection officers that the beverage manufactured in Tennessee is exempt under this subsection (a). Notwithstanding any provision of this section or law to the contrary, any revenue generated from the increase in tax rates from three dollars and forty cents ($3.40) to three dollars and ninety cents ($3.90) shall be allocated to the highway fund for the purpose of funding programs for the prevention and collection of litter and trash and matters related thereto. No later than March 31 of each year, the department of transportation shall transmit to the governor, and the speakers of the house of representatives and senate a report listing the programs receiving funds generated by this subsection (a), the amount of funds received by each program, and the purpose for which the funds were spent. This subdivision (a)(2) shall be repealed on July 1 of any year following the enactment of any state or federal law that imposes mandatory deposits by consumers on beverage containers sold in this state or on July 1, 2022, whichever occurs first. The tax levied in subsection (a) shall be a state tax and no county, municipality or taxing district shall have power to levy any like tax. This tax shall not apply to beverages previously used as a measure of tax under the provisions hereof. No retail dealer of beer, as defined in § 57-5-101(b), shall purchase beer from anyone other than a licensed wholesaler located in this state, and all such purchases shall be delivered by the wholesaler to the retailer's licensed premises only or directly to the retailer at the wholesaler's licensed premises. No wholesale distributor of beer shall purchase beer from anyone other than a licensed manufacturer, importer, or other wholesaler holding a permit issued pursuant to § 57-5-101, and all such purchases shall be delivered only at a warehouse facility owned or operated by the wholesaler and located within this state. Anyone importing or causing to be imported any beer, as defined in § 57-5-101(b), shall be liable as other wholesale distributors or dealers hereunder. Anything to the contrary notwithstanding, a retail dealer of beer as defined in § 57-5-101(b) may purchase such beverages directly from a manufacturer located in Tennessee, licensed hereunder, if the sale of such beverages by the manufacturer directly to retailers is authorized by law pursuant to § 57-5-101.