Tennessee Brewconomy: Navigating the Wholesale Beer Tax Landscape

In 2013, Tennessee transitioned from a price-based wholesale tax model to a per barrelage assessment. This research delves into the repercussions of this tax reform, assessing its impact on the brewing and wholesale distribution sectors. Despite the shift, Tennessee maintains the nation\u27s highest wholesale beer tax for 16 consecutive years. The study examines the opportunity costs associated with this elevated tax, exploring alternative uses for the funds. Utilizing data on annual revenue collected by wholesalers from 2019 to 2022, segmented by city and county, the research provides actionable insights advocating for a reduction in the wholesale tax. The argument posits that such a decrease would be advantageous for both local breweries and the broader Tennessee economy

Wholesale Beer Tax in Tennessee

In 2013, Tennessee shifted from a price-based model of wholesale tax assessment to a per barrelage model of tax assessment. This study begins by exploring the impact of this tax reform to quantify its impact on the brewing and wholesale distribution industries. Despite this tax reform, Tennessee’s wholesale beer tax has remained the highest in the nation for 16 consecutive years. In light of this, the study also considered the lost opportunity costs of this high tax and what these businesses could use this money for instead. We collected data containing the total revenue wholesalers have collected each year from 2019 to 2022 by city and county. Actionable insights are provided arguing a decrease in the wholesale tax would benefit both local breweries and the Tennessee economy as a whole