In section [57-3-107] after the words "or from a wholesaler to a licensed retailer", add the words "or from a holder of an out-of state shippers permit"

Barrier to shipping wine into Tennessee:

Add a new [57-3-610]:

Specialized non-resident wine seller's permit called a shipper's permit - Qualifications of applicants - Permits - Shipping - Reports - Penalties

(a) Non-resident wine wholesalers and wine retailers who hold valid and current licenses in the United States outside of Tennessee may apply for a specialized Shipper's Permit which allows them to ship by common carrier to retailers and consumers in the state of Tennessee.

(b) Non resident wine retailers selling to consumers must hold a valid and current resident, onsite retail license in at least one of the United States outside of Tennessee. Non-resident wine wholesalers selling to licensed, Tennessee wine retailers must hold a valid and current wholesale/distribution license in at least one of the United States outside of Tennessee.

(c) There is imposed an annual tax upon wine sold in this state. The amount of this tax shall be based on the number of cases sold in this state during the year immediately preceding any tax year as follows:
(1) Less than two hundred fifty (250) cases - One hundred dollars ($100); and
(2) Two hundred fifty (250) or more cases - Two hundred fifty dollars ($250).
(3) Prior to any shipping into the state, the shipper must register with the state using forms provided by the commission, pay a $100 application fee and must provide a copy of its current alcohol beverage license.

(d) The shipping containers must contain a label identifying the contents as containing alcohol and stating that a signature of a person age 21 or older is required to receive the shipment.

(e) The shipping person or entity must provide the commissioner of revenue with required information regarding the amount of wine shipped and must pay all applicable taxes as per schedule determined by the commission.

(f)(1) A person who is not licensed pursuant to this bill and who ships wine directly to a Tennessee resident commits a Class B misdemeanor.
(2) A person or entity who makes, participates in, transports, imports, or receives a shipment in violation of this bill commits an unfair trade practice.

Restrictions on Tennessee Wineries

Tennessee wineries cannot sell directly to Tennessee retailers/restaurants
Repeal [57-2-105 a]

Delete the first sentence of [57-3-204 (g)] "A manufacturer licensed" under chapter 2, or this chapter 3, may distribute alcoholic beverages or products containing alcohol only to a wholesaler licensed pursuant to [57-3-203 where such alcoholic beverages or products are intended for sale at retail in this state.

Replace "no manufacturer shall hold a wholesaler's license" in [57-3-404 (c)] with:
"only a Tennessee manufacturer of wine may also hold a wine wholesale license for their onsite produced wines."

Tennessee wineries cannot charge for tastings

1. Delete the words "without charge" and "complimentary" from [57- 3-204 (f)(6)].

2. Delete the words "without charge" and "complimentary" from [57-3-207 (f)(1)] and [3-207 (f)(2)].

3. Add words to the end of [57-2-105]: "except as noted for wineries in [57-3-204 (f) (6)].

None of excise tax on Tennessee wines is used to directly support the Tennessee Farm wineries to promote their products"

Add to [57-3-302 (a)] a sentence at the end : "The excise tax on wines produced in Tennessee shall be allocated to a Tennessee Wine Advisory and Promotion Commission."

Tennessee wineries can only sell restricted non alcoholic products

[57-3-207 (h) (1)] should have the word "Tennessee" deleted.
Availability of Wine in Grocery Stores

Wine cannot be sold in grocery stores in Tennessee because of several laws passed over the years:

1. No retail sales with other products -

Repeal [57-3-404 (e)(1)]

2. Shipping wine into the state -

Add to [57-3-402 (c)] an item (4):

(4) Alcoholic beverages transported by a licensee pursuant to the rules and regulations of the commission governing a non resident's seller's permit.

Economic Restriction on Wine Retailers

Retailer allowed only one retail store -
Repeal [57-3-406. (a)]
No discount beyond one case quantity -
Repeal [57-3-406 (b)]

Wholesaler monopoly of brands -
Repeal [57-3-301 (e) (5)] and replace with "The term of such a brand contract shall not exceed two years and each time a contract is initiated or renewed, a copy must be transmitted to the Department of Revenue within 30 days. Beginning in 2014, one third of a distributor/wholesaler's contracts must be terminated or renewed and transmitted to the Department of Revenue. In 2011, one half of the remaining unlimited contracts must be renewed and transmitted and in 2012, the remaining unlimited contracts must be terminated or renewed and transmitted."

Restaurants

Additional 15% Tax

A sentence is to be added to the end of [57-4-301 c]: "This tax is to be included in the published price of the drink or bottle and additional sales tax is not to be added to the bill under penalty by the Alcohol Beverage Commission."

Restaurants cannot buy wine directly from Tennessee wineries. [57-2-105 a] , [57-3-404 (c)]

Repeal [57-2-105 a]

Replace "no manufacturer shall hold a wholesaler's license" in [57-3-404 (c)] with:

"only a Tennessee manufacturer of wine may also hold a wine wholesale license for their onsite produced wines."

To look at Tennessee's Alcohol Laws - Click on "Tennessee Code" and
go to "Title 57 - Intoxicating Liquors"

For additions and corrections to this document, email to tnwinelover@gmail.com