Reference Number: 
CTAS-1626

Authority.  T.C.A. §§ 57-3-301 through 57-3-307.

Description.  This tax is on the sale or distribution by sale or gift of wine and distilled spirits with an alcoholic content of more than 5 percent by weight.  T.C.A. § 57-3-301.

Rate: $1.21 per gallon (32 cents per liter) of wine and $4.40 per gallon ($1.17 per liter) of distilled spirits.  T.C.A. § 57-3-302.

Distribution.  The tax is distributed as follows:

  1. Counties where a distillery is located receive four cents (4¢) per liter of the tax imposed on the sale of distilled spirits.
  2. Eighty-two and one-half percent (82.5 %) of the remainder to the general fund.
  3. Seventeen and one-half percent (17.5%) of the remainder to counties (general fund) as follows:

a.  Seventy-five (75%) percent of this amount is apportioned according to county population.

b.  Twenty-five percent (25%) of this amount is apportioned according to county area.

c.   However, thirty percent (30%) of the amount distributed to counties with a population of more than 250,000 is distributed to cities in the county with population over 150,000.  T.C.A. § 57-3-306.