Tennessee

The Tennessee Alcoholic Beverage Commission is established by law as the licensing and regulatory body for all persons wishing to engage in the manufacturing, distilling, mixing, or selling of beverages containing certain percentages of alcohol. The commission consists of three members appointed by the governor.

Laws & Rules:

• Title 57 Intoxicating Liquors
• TABC Rules & Regulations
• Revenue Rules & Regulations
• TABC Rulemaking

Required:   Yes

Name:  Nonresident Liquor Seller’s Permit

Fee:  $150 – less than 100 cases, $250 – 100 cases or more

Expiration:  Dec. 31st of each year

A Non-Resident Seller Permit is required to ship wine into the state of Tennessee for distribution and/or resale. There is no additional application fee for Non-Resident Seller applications. Applications must be submitted online through the Regulatory Licensing and Permitting System (RLPS) portal. Paper applications are no longer accepted.

Resources:

• Non-Resident Seller License Overview
• Declaration of Citizenship Information
• RLPS portal
• 2019 TABC RLPS Renewal Process Notice

Required:  Yes

Fee:  $0 – new brand, $0 -$250 – brand renewals

Approval:  2-3 weeks

Expiration:  May 31st of each year

Revision Required:  Tax Class, COLA change

An importer or manufacturer of alcoholic beverages or wine, must register and renew each brand with the Department of Revenue. The brand renewal rate is based on the actual number of cases sold during the previous year. Beginning in May 2019 brands can be registered and renewed online through the Tennessee Taxpayer Access Point (TNTAP).

Beginning June 1, 2020, the Department will register both domestic and imported wine brands using the product’s brand name, as listed in Box 6 on the product’s Certificate of Label Approval (COLA).

Resources:

• Register and renew brands online
• Application for Registration with the Department of Revenue (paper)
• Brand Registration Return for New Brands (paper)
• Brand Registration Renewal Return (paper)
• DOR Alcohol Tax Notice #20-2 Registration of Wine Brands issued March 2020

Franchise Law:  Yes

Exclusive Territories:  Required

Please review the law in its entirety and consult legal counsel prior to taking any action.

A written agreement between the manufacturer/importer and the Tennessee wholesale distributor is required, and a copy of such agreement must be filed with the Department. No manufacturer or importer will be permitted to transfer a brand from one wholesale distributor to another or terminate a contract without written permission of the Commissioner.

Termination of a contract to distribute alcoholic beverages within Tennessee may only be allowed for good cause, asserted in good faith. The manufacturer or importer wishing to terminate a distribution contract must submit a written termination request to the Department stating the reason for termination. The affected wholesaler must be given a reasonable opportunity to cure any alleged deficiency.  The Commissioner of the Tennessee Department of Revenue (the “Commissioner”) determines whether there is good cause, asserted in good faith.

The Department of Revenue has published a guide to help taxpayers better understand the process for terminating an alcoholic beverages distribution contract in Tennessee.

Citations:

• Tenn. Code Ann. § 57-3-301
• Tenn. Comp. R. & Regs. 1320-4-6-.07
• Tennessee Alcohol Tax Manual (June 2024) – This manual includes information provided in the previous “Termination of Distribution Contract Guide.”

Required:  No – as of 3/18/22

Effective March 18, 2022, Public Chapter 714 (2022) eliminates the requirement that every distiller, rectifier, vintner, and importer selling distilled spirits or wine to licensed wholesalers send the Department of Revenue duplicate sales invoices.  Licensees must still maintain sales invoice records because they are subject to examination by the Department.

Resources:

• Alcohol Tax Notice #22-02 Invoices of Sales to Wholesalers No Longer Required
• 2022 SB 2432 (Pub. Ch. 714), effective date 3/18/22

Available:  Yes

Fee:  $50

Expiration:  Dec. 31st of each year

A Supplier’s Representative Permit from the Tennessee Alcoholic Beverage Commission allows a representative of any manufacturer, rectifier or importer to solicit orders from a licensed wholesaler in the State of Tennessee. An applicant for a Suppliers Representative Permit must be at least 18 years of age.

Resources:

• Supplier Representative Permit Overview
• RLPS portal

Self-Distribution:  Prohibited

There are no statutory or regulatory provisions allowing an out-of-state winery to self-distribute.

• TABC FAQs
• Director’s Memo: Coupons Issued by a Retail Package Store to its Customers – March 4, 2024
• Wine In Groceries Stores and Unfair Wine Sales Law FAQs
• Tennessee Alcohol Tax Manual (June 2024)
• Legislative Summaries