2023 Tennessee Code › Title 57 - INTOXICATING LIQUORS (§§ 57-1-101 — 57-10-102) › Chapter 3 - LOCAL OPTION-TRAFFIC IN INTOXICATING LIQUORS (§§ 57-3-101 — 57-3-1103) › Part 3 - TAXES (§§ 57-3-301 — 57-3-308) › Section 57-3-301 - Brand name alcoholic beverages - Tax - Sale or importation - Contracts - Revocation of permits or licenses

(a)
As used in this section "brand" means:
(1)
Each and every distilled spirits, wine product, beer with an alcoholic content of five percent (5%) by weight or greater high alcohol content beer product bearing a distinct brand name or trade name as defined or used by the United States department of the treasury, alcohol and tobacco tax and trade bureau, shall be considered a separate "brand" for purposes of this section;
(2)
Within the group of wine or distilled spirits products bottled, manufactured, distilled, rectified, imported or marketed under a particular "brand name" or "trade name" as described in subdivision (a)(1), products which fall within separate classes or types as defined in the standards of identity for the several classes and types of wine and distilled spirits promulgated by the federal bureau of alcohol, tobacco and firearms shall be considered separate "brands" for purposes of this section; provided, that wine or distilled spirits products which differ only in the amount of alcohol or proof they contain shall not be considered separate brands for purposes of this section;
(3)
The name, trademark, or trade name of the product, as indicated on the certificate of label approval as registered with the alcohol and tobacco tax and trade bureau of the United States department of the treasury, or, if no certificate of label approval is required, then the name, trademark, or trade name of the product.
(b)
(1)
There is imposed a tax of two hundred fifty dollars ($250) per annum upon each brand of distilled spirits sold in this state, for which actual wholesale sales during the twelve (12) months immediately preceding May 22, 1979, were fifty (50) cases or more.
(2)
There is imposed a tax of one hundred dollars ($100) per annum upon each brand of distilled spirits sold in this state for which actual wholesale sales during the twelve (12) months immediately preceding May 22, 1979, were less than fifty (50) cases.
(3)
There is imposed an annual tax upon each brand of wine sold in this state. The amount of this tax shall be based on the number of cases sold at wholesale in this state during the year immediately preceding any tax year as follows:
(A)
Less than two hundred fifty (250) cases - No tax due; and
(B)
Two hundred fifty (250) or more cases - Two hundred fifty dollars ($250).
(4)
There is imposed a tax of one hundred dollars ($100) per annum upon each brand of beer with an alcoholic content greater than five percent (5%) by weight or each brand of high alcohol content beer sold in this state.
(c)
No manufacturer, importer or representative shall introduce into this state any brand of alcoholic beverages until such tax has been paid to the department of revenue.
(d)
No wholesaler shall give an order, receive, accept or offer for sale any brand of alcohol beverages until the annual tax has been paid to the department of revenue.
(e)
(1)
No brand may be introduced into the state except pursuant to written contract to sell such brand in this state between the manufacturer, brewer or importer of such brand and the Tennessee wholesaler who is to sell such brand in this state. Every contract shall contain the specified area in which such wholesaler will sell such brand and no more than one wholesaler may sell such brand in any specified area.
(2)
If any party to a contract described in subdivision (e)(1) fails to comply with any provision of the contract, an aggrieved party may bring an action in the circuit or chancery courts of this state.
(3)
No contract shall include the entire state of Tennessee as the specified area in which such wholesaler will sell any brand.
(4)
No manufacturer or importer nor any successor to a manufacturer or importer may terminate a contract prior to the expiration of its term except for good cause, asserted in good faith, as determined by the commissioner of revenue. No manufacturer or importer, nor any successor to a manufacturer or importer may seek to terminate a contract for good cause, unless such manufacturer or importer has afforded the affected wholesaler with whom it has contracted a reasonable opportunity to cure any deficiency which in no event shall be less than thirty (30) days. No successor to a manufacturer or importer may register a contract to distribute a brand in this state with the department of revenue which differs from the contract previously filed for the distribution of such brand except for good cause, asserted in good faith, as determined by the commissioner of revenue.
(5)
No manufacturer or importer nor any successor to a manufacturer or importer may fail to renew a contract with a wholesaler except for good cause, asserted in good faith, as determined by the commissioner of revenue. No manufacturer or importer, nor any successor to a manufacturer or importer may fail to renew a contract for good cause, unless such manufacturer or importer has afforded the affected wholesaler a reasonable opportunity to cure any deficiency which in no event shall be less than thirty (30) days.
(6)
For purposes of this section, any modification of the designated area serviced by a wholesaler shall constitute a termination of its contract.
(f)
If the commissioner of revenue, after a hearing, determines the manufacturer or importer has failed to establish good cause asserted in good faith as required herein, the provisions of the contract between such manufacturer or importer and the designated Tennessee wholesaler are still in force and a failure by such manufacturer or importer or its successor to ship to such a wholesaler a reasonable amount of the brand shall be grounds for a revocation of that manufacturer's or importer's nonresident seller's permit or winery license.
(g)
The department of revenue is authorized to accept the brand registrations required under this section and the contracts described in subdivision (e)(1) by electronic means. The department of revenue is authorized to approve one (1) or more third parties to facilitate electronic submissions on behalf of importers, manufacturers, suppliers, or wholesalers; provided, that such third parties shall:
(1)
Be permitted to assess a reasonable cost against the importer, supplier, manufacturer, or wholesaler that elects to use the electronic service;
(2)
Not assess any fees or costs against the state for providing such service;
(3)
Adhere to the records requirements, privacy requirements, and technical requirements imposed by the department of revenue;
(4)
Agree to provide documentation and support for all brand registrations and contract registrations as required by the department of revenue as part of the electronic process; and
(5)
Agree to facilitate communication between the department of revenue and the affected importers, manufacturers, suppliers, and wholesalers to relate the status of any filing, transfer, or tax liability.
(h)
The department of revenue is authorized to promulgate rules and regulations relative to the brand registration provisions of this section.
(i)
(1)
The department of revenue shall make available to the public the identity of the wholesalers and suppliers operating in this state, including their addresses, brands, and designated territories for which a contract has been registered with the department. Such information may be made available electronically.
(2)
If a manufacturer, supplier, importer, nonresident seller, or nonmanufacturer nonresident seller registers a contract with a wholesaler for a brand, the department of revenue shall provide notice by electronic means of such registration to the manufacturer, supplier, importer, nonresident seller, or nonmanufacturer nonresident seller, as applicable, and the contracted wholesaler.
Amended by 2021 Tenn. Acts, ch. 324, s 1, eff. 5/4/2021.
Amended by 2014 Tenn. Acts, ch. 861, s 20, s 21, s 22 eff. 5/1/2014.
Amended by 2013 Tenn. Acts, ch. 171, s 1, s 2 eff. 4/16/2013.
Acts 1979, ch. 341, § 1; T.C.A., § 57-130; Acts 1980, ch. 782, § 1; 1984, ch. 684, §§ 1, 2; 1985, ch. 125, § 1; 1996, ch. 706, §§ 1, 2.