Author: Brad Dawson

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Category: Tennessee Department of Revenue, drink prices, drink menu, Alcoholic Beverage Regulations

03.30.18

Lots of folks have been asking of late, “Do I have to show taxes in drink prices?”

The Tennessee Department of Revenue recently clarified that including taxes in drink prices is optional.  Previously, the state required that menu prices include both liquor by the drink and sales taxes.

The law now gives taxpayers the option to include taxes on the final bill to the customer, instead of in the sales price listed in menus.

A copy of the notice from Revenue is included here. LBD Tax Notice.pdf

Please keep in mind that price schedules should still contain all taxes, including both liquor by the drink and sales taxes. 

If menu prices do not include taxes, Revenue advises that the menu must state that the “15% LBD tax and sales taxes will be included on the final bill.”

See our blog post concerning price schedules here.

The notice clears up a long-standing dispute we have had with Revenue over taxes.  We have always thought that Revenue lacks statutory authority to require that taxes be included in drink prices on menus. 

There is this pesky American thing about free speech.  We love Metallica’s satirical take on freedom in Eye of the Beholder:

Independence limited

Freedom of choice

Choice is made for you, my friend

Freedom of speech

Speech is words that they will bend

Freedom no longer frees you

Doesn’t matter what you see

Or into it what you read

You can do it your own way

If it’s done just how I say

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Category: abc, Alcoholic Beverage Commission, Tennessee Alcoholic Beverage Commission, Ashleigh Harb Roberts

03.23.18

This week’s Tennessee Alcoholic Beverage Commission meeting featured a new face up front. 

Ashleigh Harb Roberts is the new Commissioner for the Middle District of Tennessee.  Commissioner Roberts replaces Commissioner Kaegi, who resigned in December 2017 and we blogged about on Last Call. 

Commissioner Roberts joins Commission Chair Richard Skiles, who we blogged about here and long-term Commissioner John Jones, East Tennessee Commission Member.  The Commissioners are appointed by the Governor and meet on a monthly basis to conduct ABC business.

Commissioner Roberts is a lawyer, having served as deputy legal counsel to Gov. Haslam.  She is a Vanderbilt Law grad, a self-described fan of red wine and a mother to five young children, including quadruplets.  Married to Gabe Roberts, chief legal officer of the Tennessee Division of Finance and Administration’s Bureau of TennCare, both were recognized as members of the 40 Under 40 class in 2016 by the Nashville Business Journal.

Reminds us of Beyoncé’s Run the World:

Girls we run this motha, girls

Who run the world?

Girls

This goes out to all my girls

That’s in the club rocking the latest

Who will buy it for themselves

And get more money later

In other ABC news, the next two ABC Meetings were set:

            Thursday, April 26 at 11 a.m.

            Thursday, May 24 at 11 a.m.

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Category: ABC, liquor stores, residency requirement

02.22.18

Source: Miosotis Jade 

The verdict is in.  The two-year residency requirement for Tennessee liquor stores is officially dead.  Again.

This week, the U.S. Court of Appeals for the Sixth Circuit upheld a lower court finding that Tennessee residency requirements violate the Commerce Clause of the U.S. Constitution.  The court struck down portions of state law that require a liquor store owner to live in Tennessee for at least two years prior to applying and to be a resident for 10 years to renew a liquor store license.

This quote pretty much sums up the court’s finding:

“The Twenty-first Amendment gives a state the power to oversee the alcoholic-beverages business, but it does not give a state the power to dictate where individuals live.”

Click the link to read the court’s full decision. Byrd v TN Wine and Spirits.pdf

Out of state residents qualify for retail liquor licenses in Tennessee.  This question appears to be settled, once and for all.

Just last month, the Tennessee ABC approved the first Total Wine location at 11370 Parkside Drive in Knoxville.  For those that live under a rock, Total Wine is a Maryland-based chain of liquor superstores.  Overall, it has more than 170 superstores in 20 states. Total Wine challenged and won the local residency requirement.  Twice in court, as of yesterday.

In recognition of the 50th anniversary of Mr. Roger’s immortal public TV show, this tune comes to mind:

So, let’s make the most of this beautiful day.

Since we’re together we might as well say:

Would you be mine?

Could you be mine?

Won’t you be my neighbor?

Let’s all be neighbors and open a friendly neighborhood liquor store.  Whether you hail from Minnetonka, Minnesota; Missoula, Montana; or Moscow, Tennessee.

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Category: Tennessee Alcoholic Beverage Commission, ABC, infused liquor

02.13.18

Source: TMAB2003 on Flikr

Late last year, we began hearing from restaurants and bars that were being cited for unlabeled Jell-O shots. It seems the Tennessee Alcoholic Beverage Commission (ABC) is treating this all-American treat as an infused beverage.

Although we disagree with the ABC’s conclusion that Jell-O shots are an infusion, we lack an army of agents out in the field — busily issuing citations. Better label your favorite delightful slurpable treats, or face fines.

Here’s the fun part. There are no rules for how to label infusions. Current Tennessee law merely states that “a batch of infused product shall be labeled with a list of each ingredient contained in the infusion.”

We suggest that each batch contain the date it was made, the ingredients and the name of the infusion.

Jell-O shots are not an infusion, in our humble opinion. An infusion “is not intended for immediate consumption.” The infusion statute applies to mixtures that steep or ferment “over a sustained period of time.” Infusions are not intended to apply to mixtures that need to chill, such as frozen drinks, or jell, like Jell-O shots.

Given the ongoing confusion over infusions, we recommend that folks also label all pre-batched cocktails. Why not? It’s easy, not a bad idea, and could save you a few hundred bucks next time your friendly ABC agent stops by for a visit.

We are going to need a serious cocktail to get the Jell-O song out of our heads:

Watch it glimmer

See it shimmer

Cool and fruity

Jell-O brand gelatin

If that didn’t stick the song in your head, check out the vintage 1979 commercial: