Tennessee Revenue webinar explains taxes, exceptions for wineries, distilleries and breweries

Billy Trout, manager of taxpayer education for the Tennessee Department of Revenue, opened a departmental webinar in April 2025 outlining how Tennessee taxes apply to wineries, distilleries and breweries and how those businesses may qualify for exceptions to the state’s three‑tier distribution system. “Good morning, everybody. This is Billy Trout, manager of taxpayer education for the Tennessee Department of Revenue,” Trout said at the start of the presentation.

The webinar focused on statutory and administrative rules that affect manufacturers’ tax obligations and distribution options, and on practical compliance steps for licensees. “The biggest thing that you guys should do is keep excellent records,” said Amanda Luke, a guest from the department’s audit division, urging producers to maintain inventories and to understand how their point‑of‑sale and inventory software reports activity.

Why it matters: Tennessee law generally requires a three‑tier chain—manufacturer, wholesaler, retailer—but state statutes and administrative permits create specific exceptions for on‑site sales, self‑distribution, satellite locations and direct shipping by manufacturers. Those exceptions change who must collect and remit Tennessee taxes such as the wine gallonage tax, sales and use taxes, liquor‑by‑the‑drink (LBD) tax and the beer barrelage tax.

Key points from the webinar

- Three‑tier overview and exceptions: The department reiterated the basic three‑tier model—retailers buy from wholesalers, wholesalers buy from manufacturers—and said wineries, distilleries and some breweries may operate outside that model under limited conditions regulated by the Tennessee Alcoholic Beverage Commission (ABC) and related state law. Katie Julian, the webinar host, pointed…