Bill > SB0574

This bill modifies taxation rates and revenue distribution for beer and soft drinks in Tennessee, with several key provisions. It reduces the special privilege tax on beer from $4.29 to $2.00 per barrel of thirty-one liquid gallons, and changes the tax on bottled soft drinks to 0.9% of gross receipts. The bill allocates specific portions of these tax revenues to environmental and transportation-related programs: for beer taxes, $1.00 per barrel goes to highway litter prevention and $1.00 to recycling grants, while for soft drink taxes, 0.5% goes to highway litter prevention and 0.4% to recycling grants. Both the beer and soft drink taxes include provisions for potential repeal if a state or federal law imposes mandatory deposits, taxes, or fees on beverage containers, or by July 1, 2028, whichever comes first. The departments of transportation and environment are required to submit annual reports detailing how these funds are used. The bill is set to take effect on July 1, 2025, and directs the Tennessee Code Commission to remove references to the repealed taxes when appropriate.

Government Affairs

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB0574&ga=114