Bill > HB0521

This bill reduces the tax rate on beer barrels and bottled soft drinks in Tennessee, while also establishing specific allocations for the tax revenue collected. For beer barrels, the tax is lowered from $4.29 to $2.00 per 31-gallon barrel, with $1.00 of each barrel's tax revenue designated for highway litter prevention programs and another $1.00 allocated to recycling grants for materials like aluminum, plastic, and glass. Similarly, for bottled soft drinks, a special privilege tax of 0.9% of gross receipts is imposed, with 0.5% going to highway litter prevention and 0.4% to recycling grants. Both the beer barrel and soft drink tax provisions include a sunset clause that would repeal these taxes if a state or federal law mandating beverage container deposits is enacted, or by July 1, 2028, whichever comes first. The bill requires the departments of transportation and environment and conservation to submit annual reports detailing how these funds are used, and it is set to take effect on July 1, 2025. These changes aim to reduce taxation on beverages while maintaining funding for environmental and infrastructure-related programs.

Budget and Finance

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB0521&ga=114