Brewers call for freezing Tennessee beer taxes

By ERIK SCHELZIG
Associated Press

NASHVILLE, Tenn. (AP) - The brewing industry wants Tennessee lawmakers to declare last call on the state's ballooning beer taxes.

Under a proposal unveiled Wednesday, the state wouldn't lose its ranking as the highest-taxed beer in the country, but it would halt future increases tied to rising costs and inflation.

Beer in Tennessee is currently subject to three taxes. Brewers pay federal and state taxes per barrel, and then a 17% tax is charged to wholesalers based on price. Consumers pay sales taxes on top of the previous charges.

The measure would convert the local tax to be based on volume. The proposal would mean no loss in revenues for city and county governments in the first year but would halt the steady growth in beer tax collections in future years.

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