Beer tax bill headed to governor

Beer tax bill headed to governor

Posted:

NASHVILLE (AP) - A proposal to freeze the state's beer tax is headed to the governor for his consideration.

The measure was approved 87-2 in the House on Wednesday. The Senate approved it 30-1 earlier this week.

Tennessee's beer taxes outstrip any other state's because the bulk of the levy is based on price rather than volume. The more a beer costs, the higher the taxes that must be paid to buy it.

In Tennessee, brewers pay federal and state taxes per 31-gallon barrel, and then a 17% tax is charged to wholesalers based on price. Consumers then pay as much as 9.75% in sales taxes on top of the previous charges.

The proposal would convert the 17% tax to a flat tax in line with the current rate.

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