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Board advances first reading of beer-code overhaul; annual renewal fee to rise
Summary
On Feb. 2, 2026 the Board of Mayor and Aldermen gave unanimous first reading to Ordinance 2026-01, which overhauls Arlington's beer-selling rules: reorganized code, new permit categories including a temporary special-event permit, clarified distance measurements, and an increase in the annual privilege (renewal) fee from $100 to $250. The measure returns for a second reading and public hearing.
The Board of Mayor and Aldermen on Feb. 2 gave unanimous first reading to Ordinance 2026-01, a comprehensive update to Title 8, Chapter 2 of the Arlington municipal code governing the sale of beer.
Town staff described the package as largely housekeeping and reorganization, with several substantive updates intended to reflect current state law and local practice. "We have updated several outdated references," said Mrs. Reader, the staff presenter, and added new definitions and explicit citations to state code where helpful for applicants and staff. The ordinance creates a clearer set of permit types (on-premise, off-premise, manufacturer/wholesaler, hotel and a new special-event permit) and adds an administrative provisional permit to speed qualified applicants through temporary delays.
Among the substantive policy changes, the ordinance reduces the on-premise food-sales threshold used to distinguish certain license types from 70% to 40% of gross revenues; establishes a special-event temporary on-premise permit (charitable, nonprofit or political events) limited to 48 hours and four events per applicant per year; clarifies how separation distances are measured (straight-line, from the nearest point on building to building); and aligns the wholesale beer tax with state law (moving code language to the local code so it will follow state updates).
The proposal also recommends increasing the annual privilege fee (the town's renewal fee for beer permits) from $100 to $250, citing administrative costs for annual renewals that the current fee does not cover. Mrs. Reader said the increase is authorized by Tennessee law and would apply equally to on-premise, off-premise, hotel and other beer permit holders.
During discussion, several board members questioned whether the increased fee could unnecessarily burden small local businesses; staff and others noted that some comparable nearby jurisdictions charge higher amounts and that the fee has not been raised in many years. Staff emphasized the renewal fee is distinct from sales taxes and wholesale excise fees and is intended to cover administrative review costs.
The ordinance passed its first reading without amendment; the mayor called for publication and scheduled the second reading and a public hearing to allow additional public input and any proposed changes. The item will return at the board's March 3, 2026 meeting for the required second reading and public hearing.
Action taken: The board approved first reading of Ordinance 2026-01 by unanimous vote. Motion to approve was offered and seconded; staff will publish required notices and accept public comment before the second reading.
