AN ACT to amend Tennessee Code Annotated, Section 57-3-207, relative to taxes.
Summary
HB0160 amends Tennessee’s wine-tax provisions in Tennessee Code Annotated § 57-3-207. The bill clarifies the tax treatment of wine sold for consumption on the premises of a winery, farm wine producer, or satellite facility. Under the amended language, those on-premises sales are subject to sales tax, while certain wine sales and tastings on the premises—including samples for tasting, whether charged or free, and retail sales of sealed containers for on-premises consumption to the extent allowed by federal law—are not subject to taxation under § 57-4-301(c).
The bill is a targeted tax measure affecting wineries, farm wineries, and their satellite facilities, as well as consumers purchasing wine at those locations. It updates state law governing alcohol-related taxation and clarifies how sales tax and other excise or privilege tax provisions apply to wine sold and sampled at winery premises. The act takes effect July 1, 2025.
Impact
HB0160 amends Tennessee Code Annotated § 57-3-207 to refine the tax rules for wine sold at wineries, farm wine producers, and satellite facilities. It preserves sales tax on certain on-premises wine sales while exempting specified tastings and sealed-container sales for on-premises consumption from taxation under § 57-4-301(c), thereby adjusting the tax obligations of alcohol retailers and producers operating tasting rooms and similar venues.
Sentiment
The bill appears to have been generally well received and moved through the legislative process with strong support. It passed committee stages with large margins and cleared the House floor by a substantial vote, indicating broad agreement on the need to clarify the tax treatment of winery sales and tastings. The final third consideration vote in the House was unanimous.
Contention
There was little visible controversy in the available record. The only notable opposition came on the House floor, where 15 members voted no on third consideration, suggesting some disagreement over the tax treatment or the broader policy implications for alcohol-related businesses. No committee transcript is available, so the specific objections are not documented, but the bill otherwise advanced with overwhelming support in committee and on final passage.