TN Beer Tax Reform

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Updated: 3/04 3:04 pm
        Free beer samples at Mellow Mushroom brought out a quite the crowd, but that is not the only reason for the gathering.
        They were supporting new legislation called Fix the Beer Tax.
        Representative Cameron Sexton of Crossville helped create the bill.
        "The problem is we're having is Tennessee is the only state that taxes beer based on price instead of based on volume, and so what we're trying to do is go back in and change the tax structure," said Sexton.
        Jonathan Clark owns the Chattanooga Brewing Company and has been brewing in Chattanooga for three years now.
        "Getting to work with something that makes people happy at the end of the day it's just a lot of fun," he said.
        The money he's forking out on taxes is not so fun.
        "17 percent growth wholesale is an enormous amount of money we pay to the city and state and the fact that it's going to keep growing as the price of beer goes up, it really keeps us from investing in our business," Clark said.
        The high tax is such a nuisance to brewers, Nashville based Yazoo Brewing Company owner Linus Hall created a beer just to increase awareness.
        Hall said, "We're always complaining about the taxes in Tennessee so we thought what better way to bring attention to it than to create what we think is a unique style to Tennessee, it's the Tennessee High Tax Ale is what we're pouring down here tonight."
        The tax not only affects the price you'll pay for a pint, but the diversity in beers available in the state.
        Clark said, "A lot of folks here in town will drive down to Ft. Oglethorpe to the  beverage world store and buy beers down there they can't find in Tennessee just because their brewers basically skip Tennessee when they grow from the East of West."
        Representative Sexton says the problem hurts more than just brewers and beer drinkers.
        "Even though they might have a business that's based on beer or alcohol, it's still a business and it's a business model and plan that provides a lot of economic development to Chattanooga and a lot of jobs, and a lot of revenue, said Sexton.
        He plans to introduce the bill in the next two weeks.


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