AN ACT to amend Tennessee Code Annotated, Title 57, relative to the beer barrelage tax.
Summary
SB0788 amends Tennessee’s beer barrelage tax statute to direct a small portion of the state’s existing general-fund allocation from that tax to the Department of Agriculture. Specifically, it requires that 3% of the amount of barrelage tax revenue otherwise allocated to the state general fund 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 create a new tax or change the barrelage tax rate; instead, it changes how a portion of existing revenue is distributed. Its practical effect is to earmark a limited share of beer tax proceeds for agricultural and industry-development purposes beginning July 1, 2025.
Impact
The bill amends Tennessee Code Annotated, Section 57-5-205, within Title 57 governing alcoholic beverages and beer taxation. It redirects 3% of the general-fund share of beer barrelage tax receipts to the Department of Agriculture, creating a dedicated funding stream for programs that encourage the use of Tennessee-grown agricultural inputs in brewing and support the state brewing industry. This affects state revenue allocation rather than taxpayer liability, and it may benefit farmers, brewers, and related economic development efforts.
Sentiment
The available voting history suggests generally favorable sentiment toward the bill. The Senate State & Local Government Committee recommended passage by a 7-1 vote and referred the measure onward, indicating broad support with limited opposition. No committee transcript was provided, so the record shows support in committee but does not reveal detailed debate or concerns.
Contention
The main point of contention appears to be whether a portion of beer tax revenue that would otherwise go to the general fund should instead be earmarked for a specific industry and agricultural purpose. Supporters likely view the measure as a targeted investment in Tennessee agriculture and brewing, while the lone dissenting vote suggests at least one member had reservations about diverting general revenue or creating a dedicated funding preference. Because no transcript is available, the precise objections are not stated.
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.