AN ACT to amend Tennessee Code Annotated, Section 57-3-207, relative to taxes.
Summary
SB1072 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, such on-premises wine sales are subject to sales tax, while certain sales and tastings on the premises, including complimentary or charged samples 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 measure is a targeted tax clarification for Tennessee wineries and farm wine producers, affecting how these businesses collect and remit taxes on tasting-room and on-site sales. It takes effect July 1, 2025, and updates state law governing alcohol-related taxation without broadly changing the underlying licensing or distribution framework.
Impact
The bill amends Tennessee Code Annotated § 57-3-207(t) to specify which winery-related wine sales are subject to sales tax and which are exempt from taxation under § 57-4-301(c). Its practical effect is to align tax treatment for on-premises wine consumption, tastings, and certain sealed-container sales at wineries, farm wine producers, and satellite facilities, thereby affecting those businesses’ point-of-sale tax obligations and compliance practices.
Sentiment
The bill appears to have been received favorably and moved through the legislative process without recorded opposition in committee. It passed the Senate State & Local Government Committee 8-0 and the Senate Finance, Ways and Means Committee 10-0, suggesting broad support for the clarification of winery tax rules. The enacted public chapter indicates the measure ultimately became law.
Contention
No committee transcript was provided, and the recorded votes show no dissent, so there is little evidence of substantive controversy in the available materials. Any potential point of contention would likely center on the tax treatment of winery tasting-room sales and whether certain on-premises sales should be taxed or exempt, but the available record does not show organized opposition from lawmakers or affected stakeholders.