Gov. Bill Haslam signs beer tax measure

Gov. Bill Haslam signs beer tax measure

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NASHVILLE (AP) - A proposal to freeze the state's beer tax has been signed by the governor.

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 converts the 17% tax to a flat tax in line with the current rate.

The House approved the measure 87-2, and it passed the Senate 30-1.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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