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Panel of local officials, wholesalers and restaurateurs tell TACIR Tennessee’s 15% liquor‑by‑the‑drink tax strains restaurants

Tennessee Advisory Commission on Intergovernmental Relations (TACIR) · February 1, 2024
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Summary

Panelists told TACIR Tennessee’s 15% liquor‑by‑the‑drink tax (the highest on‑premise rate among states with such taxes) and other fees burden restaurants and can prompt consumer confusion; the panel also highlighted local regulatory tools, server training and consumer‑protection complaints in the residential solar market.

TACIR convened a six‑person panel and heard extensive member questions about Tennessee’s liquor‑by‑the‑drink (LBD) tax, local beer‑permit authority, server permitting, and consumer protection for restaurants.

Staff said the study was directed by Senate Bill 2262 and House Bill 695. Madison Moffett opened the panel and said Tennessee’s 15% LBD tax generated about $187 million for K–12 education in fiscal 2021–22. Panelists included Shauna Billingsley (City Attorney, Franklin), David Connor (Executive Director, Tennessee County Services Association), Rich Fogg (Tennessee Malt Beverage…

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