Tennesseans Rally for Beer Tax Reform

Tennessee beer lovers are rallying to support the Beer Tax Reform Act of 2013, legislation that seeks to reverse the nation's highest beer tax.

February 07, 2013

MEMPHIS - Backers of legislation that changes Tennessee??s wholesale beer tax are rallying together this Friday to voice their support, the Memphis Business Journal (MBJ) reports. Currently, Tennessee places a 17% tax on the price of beer sold to beer distributors.

Filed January 29 by State Sen. Brian Kelsey and Rep. Cameron Sexton, the Beer Tax Reform Act of 2013 addresses Tennessee??s beer tax policy that was created in the 1950s. The proposal would change how the tax is calculated for wholesale deliveries from a price-based formula to one calculated on volume.

Tennessee??s beer tax has increased an average of $1.15 per barrel each year and is projected to be $42.75 per barrel in five years.

"I want to hire more people and invest more money in my business, but because of the tax, it makes it more difficult to do so," said Linus Hall, owner of Yazoo Brewing. "We??re growing, but just not as fast as we could have to keep up with consumer demand. The margins are just too small because of the 17% tax."

"Tennessee is beyond the tipping point," said Rich Foge, president of the Tennessee Malt Beverage Association. "The current tax policy allows the tax rate to rise unchecked at such a dramatic rise that it is now impacting competitiveness, economic opportunity and costs and choice for consumers. The tax rate is out of control ?" it??s time to modernize this old tax and make it right."

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