§ 57-4-301 — Privilege taxes - Tax on retail sales - Carrier license fees - Mixing bar tax

(a) It is hereby declared the legislative intent that every person is exercising a taxable privilege who engages in the business of selling at retail in this state alcoholic beverages for consumption on the premises. (b) (1) Each applicant for an on-premises consumption license shall pay to the commission a one-time, nonrefundable fee in the amount of three hundred dollars ($300) when the application is submitted for review. Further, once a license is approved, for the exercise of such privilege, the following taxes are levied to be earmarked for and allocated to the commission for the purpose of the administration and enforcement of the duties, powers, and functions of the commission, and are to be paid annually, as follows: Effective July 2003 July 2004 (A) Private club $ 300 $ 500 (B) Convention center $ 500 $1000 (C) Premier type tourist resort $1500 $2000 (D) Historic performing arts center $ 300 $ 150 (E) Urban park center $ 500 $ 150 (F) Commercial passenger boat company $ 750 $1250 (G) Historic mansion house site/Historic inn $ 300 $ 150 (H) Historic interpretive center $ 300 $ 150 (I) Community theater $ 300 $ 150 (J) Zoological institution $ 300 $ 150 (K) Museum $ 300 $ 150 (L) Establishment in a terminal building of a commercial air carrier airport $1000 $1500 (M) Commercial airline travel club $ 500 $1000 (N) Public aquarium $ 300 $ 150 (O) Motor speedway $1000 $2000 (P) Sports facility $1000 $2000 (Q) Theater $ 300 $ 150 Further, for the exercise of such privilege, the following taxes are hereby levied to be earmarked for and allocated to the commission for the purpose of administration and enforcement of the duties, powers, and functions of the commission, and are to be paid in accordance with the following schedule: (R) Restaurant, according to seating capacity, on licensed premises: (i) 40 . 74 seats $ 650 (ii) 75 . 125 seats $ 750 (iii) 126 . 175 seats $ 925 (iv) 176 . 225 seats $ 975 (v) 226 . 275 seats $1100 (vi) 276 seats and more $1200 Wine-only restaurant, according to seating capacity on licensed premises: July 2003 July 2004 July 2005 July 2006 (vii) 40 . 125 seats $ 120 $ 170 $ 220 $ 270 (viii) 126 . 175 seats $ 150 $ 200 $ 250 $ 300 (ix) 176 . 225 seats $ 160 $ 210 $ 260 $ 310 (x) 226 . 275 seats $ 180 $ 230 $ 280 $ 330 (xi) 276 seats and more $ 200 $ 250 $ 300 $ 350 (S) Caterers: July 2003 July 2004 July 2005 July 2006 $ 500 $ 550 $ 575 $ 625 (T) Hotels, according to room capacity, on licensed premises: July 2003 July 2004 July 2005 July 2006 (i) 0 . 99 rooms $1000 $1000 $1000 $1000 (ii) 100 . 399 rooms $1000 $1000 $1200 $1250 (iii) 400 rooms and over $1000 $1200 $1400 $1500 (U) Retirement center $150 (V) Civic arts center $150 (W) Limited service restaurant, based on the gross sales of prepared food: (i) At least 30% of gross sales $2,000 (ii) At least 20% but not more than 30% of gross sales $3,000 (iii) At least 15% but not more than 20% of gross sales $4,000 (iv) 0% but not more than 15% of gross sales $5,000 (X) Food hall $1,250 . (2) Each county or municipality within which such privilege is exercised is authorized to levy and collect the privilege tax separately. However, such privilege tax collected by the county or municipality will remain at the 2003 level and any monetary increase of the privilege tax in fiscal years beginning July 1, 2004, and thereafter, as provided in this subsection (b) will be solely used for the purpose of the administration and enforcement of the duties, powers, and functions of the Tennessee alcoholic beverage commission; provided, however, that in any county where metropolitan government prevails, the urban service district shall constitute the municipality and the general service district shall constitute the county insofar as this chapter is concerned. (3) Notwithstanding subdivision (b)(1)(E) to the contrary, "urban park centers" under § 57-4-102(40)(G)-(K) and (S) shall pay an annual privilege tax of four thousand dollars ($4,000) to be earmarked for and allocated to the commission for the purpose of administration and enforcement of the duties, powers, and functions of the commission. (c) (1) In addition to the privilege taxes levied in subdivision (b)(1), there is further levied a tax equal to the rate of fifteen percent (15%) of the sales price of all alcoholic beverages sold for consumption on the premises, the tax to be computed on the gross sales of alcoholic beverages for consumption on the premises for the purpose of remitting the tax due the state, and to include each and every retail thereof. (2) A person required by subdivision (c)(1) to collect and pay the tax on the sale of alcoholic beverages on the premises may include the tax in the menu price of the alcoholic beverage or may include the tax on the final bill to the customer. A person that does not include the tax in the menu price of the alcoholic beverage product must advise customers on its menu that a fifteen percent (15%) tax on the sale of alcoholic beverages will be added to the final bill. (d) Commercial airlines, paddlewheel steamboat companies and passenger trains shall, in lieu of taxes levied under subsections (b) and (c), pay annually to the state, for state purposes, a license fee of twelve hundred fifty dollars ($1,250). Commercial airlines, paddlewheel steamboat companies and passenger trains which have paid the annual license fee under this section may bring into and store in this state alcoholic beverages on which the Tennessee alcoholic beverage taxes levied under § 57-3-302 , have not been paid, but must comply with subdivisions (d)(1) and (2): (1) Commercial airlines, paddlewheel steamboat companies and passenger trains that bring into, or possess in this state alcoholic beverages on which taxes levied by this state have not been paid are liable for such taxes on the alcoholic beverages; (2) The liability of commercial airlines, paddlewheel steamboat companies and passenger trains for taxes levied under § 57-3-302 , is determined by multiplying the: (A) Quantity of each type of alcoholic beverage purchased within the operating system of each commercial airline, paddlewheel steamboat company or passenger train by the ratio of its revenue passenger miles in Tennessee to the total revenue passenger miles within its system; and (B) Respective results obtained under subdivision (d)(2)(A), by the applicable tax rate for each type under § 57-3-302 , and the rules and regulations promulgated pursuant thereto; (3) Monthly reports of the liability, determined under subdivision (d)(2), shall be submitted to the department of revenue on forms designated by the commissioner, on or before the last day of each month following the month during which any tax liability arises under this subsection (d). A commercial airline, paddlewheel steamboat company or passenger train that fails to file the report required, or to pay the tax payable under this section in a timely manner as defined by rules and regulations promulgated by the department, is liable for interest and penalties as provided by law; and (4) This subsection (d) does not apply to commercial airline travel clubs. (e) No tax authorized or imposed by this section shall be levied or assessed from any charitable, nonprofit, or political organization selling alcoholic beverages at retail pursuant to a special occasion license. (f) A restaurant, hotel, or caterer licensed under this chapter may obtain a catering license upon the payment of an additional privilege tax in accordance with subdivision (b)(1)(S), for state purposes, to be paid annually. (g) A special historic district authorized to serve wine under § 57-4-101 shall pay an annual privilege tax of one hundred dollars ($100) for the privilege of serving wine within such district.

Legislative History

Amended by 2024 Tenn. Acts, ch. 1024,s 12, eff. 5/28/2024. Amended by 2024 Tenn. Acts, ch. 926,s 3, eff. 5/6/2024. Amended by 2024 Tenn. Acts, ch. 865,s 4, eff. 7/1/2024. Amended by 2021 Tenn. Acts, ch. 330, s 3, eff. 5/4/2021. Amended by 2017 Tenn. Acts, ch. 338, s 4, eff. 5/9/2017. Amended by 2014 Tenn. Acts, ch. 915, s 1, eff. 5/13/2014. Amended by 2013 Tenn. Acts, ch. 371, s 2, eff. 5/6/2013. Acts 1967, ch. 211, § 3; 1972, ch. 682, § 5; 1972, ch. 756, § 6; 1979, ch. 284, § 1; 1979, ch. 401, § 5; T.C.A., § 57-157; Acts 1980, ch. 898, § 3; 1981, ch. 404, § 5; 1981, ch. 475, § 5; 1983, ch. 52, § 6; 1983, ch. 300, § 5; 1983, ch. 469, § 8; 1984, ch. 975, § 8; 1986, ch. 899, § 9; 1987, ch. 444, §§ 10, 11; 1991, ch. 219, § 2; 1992, ch. 674, § 8; 1998, ch. 795, § 4; 2001, ch. 64, § 3; 2001, ch. 74, § 5; 2001, ch. 84, § 3; 2004, ch. 544, § 3; 2004, ch. 876, §§ 7 - 10; 2005, ch. 253, § 3; 2009 , ch. 168, § 1; 2010 , ch. 647, § 3; 2010 , ch. 1133, § 4; 2012 , ch. 790, §§ 3, 4.