Section 57-3-303 - Payment of tax - Returns - Bond - Stamps - Rules and regulations - Penalties - Armed forces exemption(a) Any wholesaler who imports alcoholic beverages into this state, or who receives alcoholic beverages manufactured in the state, for the purpose of resale in any retail container for eventual retail sale or distribution by sale or gift in this state, shall pay the tax imposed in § 57-3-302; provided, that manufacturers and rectifiers duly qualified under this chapter shall be exempt therefrom on all out of state shipments made to persons holding both federal and state permits to sell alcoholic beverages; and provided further, that any distiller or manufacturer licensed to manufacture alcoholic beverages in Tennessee shall be permitted to pay such tax to the commissioner of revenue on such amount of its own product as may be needed for its own use, not to exceed one hundred (100) cases per month. Whenever "sale" or "sold" is used hereinafter in this section, it also means "use" or "used" and "distribute by gift" or "distributed by gift," unless the context requires otherwise.(b)(1) The tax levied by § 57-3-302 shall become due and payable on the first day of each month following the month during which taxable transactions occur, and shall become delinquent if not paid on or before the fifteenth day of each such following month. For the purpose of ascertaining the amount of tax payable, it is the duty of each licensed wholesaler, distiller or manufacturer to transmit to the commissioner a return, as provided for hereinafter, on or before the fifteenth day of each month, upon forms prescribed, and furnished by the commissioner. The tax liability established on the return submitted shall be based upon adjusted gross sales, other than sales or returns to wholesalers and/or suppliers, for the preceding calendar month, and payment thereof shall be made on or before the fifteenth day following such month.(2) In the event of termination of business by a wholesaler, a final return shall be filed and all tax due paid on or before the fifteenth day following closure.(c)(1) Each wholesaler of alcoholic beverages in this state shall file, on or before the fifteenth day of each month, an exact and verified return with the commissioner showing therein, for the preceding calendar month, the quantities of alcoholic beverage:(A) Constituting the wholesaler's beginning and ending inventory;(B) Shipped to the wholesaler from within this state and received by the wholesaler in this state;(C) Shipped to the wholesaler from outside the state and received by the wholesaler in this state;(D) Sold by the wholesaler to purchasers or persons in this state and, indicated separately, those sales or transactions of alcoholic beverages to purchasers or persons within this state on which the tax levied in § 57-3-302 is not applicable; and(E) Sold by the wholesaler to purchasers or persons outside this state.(2) Such report shall also contain any other information required by the commissioner.(d) Each wholesaler, distiller or manufacturer required to file a return shall keep accurate and complete books and records, accounts, and other documents as may be deemed necessary by the commissioner and the commission to substantiate the accuracy of the wholesaler's, distiller's or manufacturer's return and the amount of tax due, and shall retain such records for a period of three (3) years.(e) The commission, after public hearing of which the licensee shall have due notice as heretofore provided in this chapter, may suspend or revoke any license heretofore issued under this chapter for a failure to pay any tax required by this chapter and may suspend or revoke such license for a violation of or failure to comply with the rules and regulations promulgated hereunder, upon receipt of a certification from the commissioner reflecting such failure to pay such tax or a violation of or failure to comply with such rules and regulations.(f)(1) In order to ensure the payment of taxes levied herein, every licensed wholesaler of alcoholic beverages shall qualify with the commissioner before making sales of any alcoholic beverages in this state.(2) In order to so qualify, each wholesaler who is licensed in this state shall annually furnish the department: (A) A cash bond, or a surety bond, with a solvent surety company qualified to do business in this state, the amount of which shall be no less than one hundred ten percent (110%) of the average monthly tax liability of such licensee for the taxes imposed herein during the preceding twelve-month period;(B) Any wholesaler shall before beginning business file an initial bond for a period of four (4) months, the amount of which shall be determined by the commissioner, and at the end of such period the bond shall be adjusted for the balance of the twelve-month period or until the following July 1, whichever occurs first, in an amount no less than one hundred ten percent (110%) of the average tax liability of licensee for the first four (4) months engaged in business, and such bond shall be adjusted annually thereafter in the manner as set forth in subdivision (f)(2)(A); and(C) Such other information as the commissioner may require.(g) The purchase and affixation of alcoholic beverage tax or identification stamps are not required in this state, and all requirements pertaining to the purchase and affixation of such stamps are hereby specifically repealed.(h)(1) If a taxpayer has been in continuous operation for three (3) consecutive years and during the preceding twelve (12) months has paid the gallonage tax imposed by § 57-3-302 for which the taxpayer is liable within the period set by this section or by rule, then the taxpayer shall not be required to execute and maintain any bond required by this section.(2) Any taxpayer exempted from the bonding requirement of this section who fails to pay the tax levied by § 57-3-302 within the period for payment set by this section or by rule shall, upon such failure, be required to execute and maintain a bond as required in this section.(i) The commission shall be authorized to prescribe the manner by which any licensee shall document that all alcoholic beverages sold or distributed in this state have been properly distributed and that all taxes imposed hereunder have been paid.(j) The commission and the commissioner are authorized to make reasonable rules and regulations, not inconsistent with this chapter, relative to the proper documentation needed to demonstrate that all alcoholic beverages and wine distributed in this state have been properly taxed.(k) The state tax set forth in this title on intoxicating liquor or alcoholic beverages, as defined in § 57-3-101, shall not be applicable to such intoxicating liquors or alcoholic beverages sold for consumption within the geographical boundaries of a fort, base, camp or post of the armed forces of the United States, or to post exchanges, ship service stores, commissaries and messes operated by the United States armed forces. The exemption of the tax herein made shall be effectuated by the department allowing wholesalers and distilleries, duly licensed in Tennessee, credit for taxes paid on such intoxicating liquors or alcoholic beverages sold to post exchanges, ship service stores, commissaries and messes operated and controlled by the United States armed forces, and which are instrumentalities of the government of the United States. This credit shall be allowed only upon application made therefor to the department by the wholesaler or distillery delivering the intoxicating liquor or alcoholic beverage, and upon a showing by copy of the invoice with the signature of an officer or civilian employee who possesses managerial authority over the post exchange, ship service store, commissary or mess certifying that the alcoholic beverage was sold to and delivered to the post exchange, ship service store, commissary or mess by the Tennessee wholesaler or distillery. In addition, the application shall be supported by such other evidence as the commissioner may by regulation require.(l) Notwithstanding § 57-3-302, the state tax on intoxicating liquor or alcoholic beverages with an alcoholic content of seven percent (7%) or less shall be one dollar and ten cents ($1.10) per gallon and no identification stamps shall be required to be fixed to the retail container of such alcoholic beverage.Amended by 2014 Tenn. Acts, ch. 861,s 5, eff. 5/1/2014.Acts 1939, ch. 49, § 13; C. Supp. 1950, § 6648.19 (Williams, § 6648.16); Acts 1965, ch. 119, § 1; 1968, ch. 521, § 1; 1970, ch. 361, § 1; 1970, ch. 398, § 1; 1974, ch. 707, § 1; modified; T.C.A. (orig. ed.), § 57-132; Acts 1980, ch. 885, § 4; 1983, ch. 119, § 1; 1987, ch. 226, § 1; 1988, ch. 526, § 13; 1990, ch. 621, §§ 1, 2; 1992, ch. 608, §§ 1-4; 1993, ch. 108, § 1.