AN ACT to amend Tennessee Code Annotated, Title 57, relative to the beer barrelage tax.
Summary
HB0831 amends Tennessee’s beer barrelage tax statute to direct a small portion of the state’s general-fund share of that tax to the Department of Agriculture. Specifically, it requires that 3% of the amount allocated to the state general fund from the beer barrelage tax be used to support the use of Tennessee agricultural products in brewing and to promote growth in the state’s brewing industry.
The bill does not change the tax rate itself or the overall structure of the beer barrelage tax. Instead, it reprograms a portion of existing revenue beginning July 1, 2025, creating a dedicated funding stream for agricultural and brewing-related promotion efforts within state government.
Impact
The bill would amend Tennessee Code Annotated, Title 57, Section 57-5-205, by adding a new earmark on the distribution of beer barrelage tax revenues. Its practical effect is to divert 3% of the state general fund allocation from that tax to the Department of Agriculture for industry development purposes, potentially benefiting Tennessee farmers, local ingredient suppliers, brewers, and related economic development efforts. State law governing beer tax revenue allocation would be modified, but no new tax burden is imposed on breweries or consumers.
Sentiment
Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the measure appears to be a targeted, generally supportive economic-development proposal rather than a controversial tax increase. The bill’s purpose suggests favorable treatment for agriculture and the brewing sector, with an emphasis on promoting in-state products and industry growth. No recorded opposition or amendment activity is available in the provided context.
Contention
The main potential point of contention is the reallocation of state general-fund revenue: even though the amount is small, some stakeholders could object to earmarking tax receipts that would otherwise flow to the general fund. Another possible issue is whether the Department of Agriculture should be the recipient of beer-tax revenue for industry promotion, as opposed to broader economic development or general budget uses. No specific objections, supporters, or recorded disagreements are included in the provided committee or voting history.
AN ACT to amend Tennessee Code Annotated, Title 43; Title 57 and Title 67, relative to tax credits for alcoholic beverage byproducts donated for agricultural use.
AN ACT to amend Tennessee Code Annotated, Title 43; Title 57 and Title 67, relative to tax credits for alcoholic beverage byproducts donated for agricultural use.