2007 Report Archive

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02-23-07

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02-09-07

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01-26-07

01-19-07

01-12-07

2006 Year-End Report

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Amendments to Cigarette Tax Strip Education Funding

The Bredesen administration and its allies were planning how to resurrect the wording of the “education first” proposal to hike cigarette taxes and use the 220 million dollars for education. Rumours around the plaza have now dubbed the proposed plan as a “food first” initiative after Majority Leader Gary Odom of Nashville got the proposal out of the hostile House Agriculture Committee this week, but not without amending the bill beyond recognition. Odom says its now in need of a repair job. Chairman Stratton Bone sponsored two amendments to the bill. The first amendment that was adopted added 21 million dollars from the tax increase to the Agricultural Enhancement Grant program administered by the Dept. of Ag.  The second amendment that was adopted reduced the excise tax increase on cigarettes from 40 cents to 20 cents a pack. An amendment that was adopted by the committee and sponsored by Rep. John Mark Windle took the sales tax of certain food items at a cost of $127 million. That in essence left no funding for the Governor’s School’s First initiative. There was much confusion as to how much the cigarette tax was reduced in the last amendment that was adopted.  Members of the legislative legal staff reviewed tapes of the committee meeting to determine how the final, oral amendment was worded. They ruled the tax hike was cut in half to twenty cents per pack and the funding aimed at education was gone.  The bill is now headed to the friendlier House Finance Committee, where in all probability, the former amendments will be stripped and others added.

In the AT&T-TML/Cable war, results of a TV4US poll released this week show that a majority of Tennessee consumers feel cable prices are too high, want more competition in the cable market and support legislation to bring more competition into the video market. Currently, the state Legislature is considering the “Competitive Cable and Video Services Act” which would change the existing local franchise process. TV4US Tennessee, a nonprofit organization educating consumers and law- and policy-makers on the benefits of consumer choice in video competition released the data culled from a survey of more than 600 registered voters across the state of Tennessee. Three in four voters say that cable television prices are too high, including 45 percent who think they are much too high, according to the survey. Also, 76 percent of those surveyed feel that not enough competition exists to keep prices down and provide good service in the cable television service area.

As the legislature continues to get through committee hearings and public hearings, the committees are starting to announce closure dates.  Most committees will be shut down in the next few weeks, most probably by the first week in May.  This will leave time for the budget process to start.  How long that will take is anyone’s guess.  The revenue figures for April will come out May 8th, and many senators in the Senate are waiting sot see how much surplus those figures will bring in before deciding on any tax increases.

Please call if you have questions.

 

 

Tennessee Legislation Service (c) 2007 M. Lee Smith Publishers
Friday, April 13, 2007

ALCOHOLIC BEVERAGES

SB 0634*
HB 1750
(Full Text)

Allows sale of alcohol on Sundays that are certain holidays. Allows retailers to sell alcoholic beverages on Sundays between the hours of noon and eleven p.m. and on Labor Day, the Fourth of July, and New Year's Day. (S: Marrero; H: Jones U.)
Senate Status: Failed in Senate State & Local Government 03/13/2007 for lack of a second.
House Status: Referred to House Local Government Subcommittee.

SB 0680*
HB 0787
(Full Text)

Cannot sell beer or alcohol near drug treatment facility. Authorizes counties and cities to adopt ordinance or resolution that prohibits sale of beer and alcoholic beverages within 2,000 feet of a drug or alcohol treatment facility. (S: Bunch; H: Campfield)
Senate Status: Referred to Senate State & Local Government.
House Status: Referred to House Local Government Subcommittee.

SB 0795*
HB 1324
(Full Text)

ID tags on beer kegs. Requires retailers to place identification tag on kegs containing beer that identifies the seller. Requires purchaser to pay a minimum deposit of $75 and to sign a registration form. Directs department of revenue to prescribe and supply forms for keg identification so that buyers and sellers can be held accountable for unlawful purchases. Violation is a Class C misdemeanor. (S: Burchett; H: Briley)
Senate Status: Referred to Senate State & Local Government.
House Status: Set for House Local Government Subcommittee 04/18/2007.

SB 1221*
HB 1194
(Full Text)

Special occasion license for certain events. Allows charitable, nonprofit, or political organization to obtain special occasion license for event in political subdivision that has approved sale of alcoholic beverages for consumption on the premises. Clarifies current law that specifies approval only of the sale of alcoholic beverages at retail on the premises. (S: Cooper J.; H: Harmon) House amendment 1 rewrites the bill to authorize the Swiss Colony in Gruetli-Lager to give samples of homemade wine at its annual festival.
Senate Status: Referred to Senate State & Local Government.
House Status: House 04/09/2007 passed with amendment 1.

SB 1223*
HB 1529
(Full Text)

Special occasion license for charitable organization. Permits alcoholic beverage commission to issue a special occasion license to certain 501(c)(3) organizations for selling wine in closed containers for consumption on or off premises. Allows any resident of Tennessee to donate wine to such organizations. (S: Cooper J.; H: Odom)
Senate Status: Referred to Senate State & Local Government.
House Status: Set for House Local Government Subcommittee 04/18/2007.

SB 1224*
HB 1755
(Full Text)

Retail license holder may offer free samples of wine. Permits entities holding a retail license or a winery license to provide free samples of wine to consumers on the premises under certain circumstances. Subjects those who violate specified requirements while providing samples to suspension of license or a fine of up to $3,000. (S: Cooper J.; H: Jones U.)
House Co-Sponsor: Tindell
Senate Status: Referred to Senate State & Local Government.
House Status: House Local Government Subcommittee deferred to last calendar.

SB 1807*
HB 2120
(Full Text)

Any wine made from 50% TN fruit - unlimited sale. Allows any winery selling wine made from 50% of any Tennessee fruit to sell it on premises without restriction on number of gallons sold where grapes were previously the only fruit under this provision. (S: Ketron; H: Litz)
Senate Status: Referred to Senate State & Local Government.
House Status: Referred to House Local Government Subcommittee.

SB 1821*
HB 1658
(Full Text)

Registration period for beer manufacturers, distributors. Increases time period from 20 to 25 days for manufacturer or distributor of beer to register at the office of the commissioner of revenue. Broadly captioned. (S: Bunch; H: Mumpower)
Senate Status: Referred to Senate State & Local Government.
House Status: Caption bill held on House clerk's desk.

SB 1879
HB 1119
(Full Text)

Beer distributors' registration. Increases time period during which beer distributors must register with commissioner of revenue from 20 to 25 days. (S: Jackson; H: Buck)
Senate Status: Referred to Senate State & Local Government.
House Status: Caption bill held on House clerk's desk.

SB 1977*
HB 1850
(Full Text)

Wine direct shipper license. Creates wine direct shipper license to be issued through the alcoholic beverage commission that would allow an in-state or out-of-state entity to ship wine directly to consumers age 21 years or older in this state for personal use. (S: Stanley; H: Todd)
Senate Status: Referred to Senate State & Local Government.
House Status: House Local Government Subcommittee deferred to 04/18/2007.

SB 2072
HB 1899*
(Full Text)

Sales of wine by certain retail food stores. Prescribes the creation of an additional class of licenses allowing the sale of wine at retail food stores. (S: Marrero; H: Kernell)
Senate Status: Failed in Senate State & Local Government 03/13/2007 for lack of a motion.
House Status: Referred to House Local Government Subcommittee.

SB 2289
HB 1825*
(Full Text)

Wholesaler's license expansion. Allows wholesaler's licenses to be granted in any municipality that has approved the sale of alcoholic beverages rather than only those with a minimum population of 100,000. (S: Burchett; H: Lundberg)
Senate Status: Referred to Senate State & Local Government.
House Status: House Local Government Subcommittee deferred to 04/18/2007.

COMMERCIAL LAW

SB 0850*
HB 1019
(Full Text)

Processing fees charged for use of debit or credit card. Prohibits card issuer from charging a processing fee to retail merchants for the use of credit or debit cards that is more than seventy-five hundredths of one percent (0.75%) per transaction for all processing fees involving the use of a credit or debit card. (S: Kilby; H: Ferguson)
Senate Status: Taken off notice in Senate Commerce, Labor & Agriculture 03/27/2007.
House Status: Taken off notice in House Utilities, Banking & Small Business Subcommittee 04/10/2007.

TAXES BUSINESS

SB 1394*
HB 1193
(Full Text)

Increased tax on cigarettes and wine. Increases tax on spirits from $4.40 per gallon to $4.50 per gallon. Also increases tax on wine from $1.21 per gallon to $1.31 per gallon. Increases tax on cigarettes from 10 mills per cigarette to 1.5 cents per cigarette. (S: Crutchfield; H: Harmon)
Senate Status: Taken off notice in Senate Finance Tax Subcommittee 03/20/2007.
House Status: Referred to House Finance Budget Subcommittee.

TAXES SALES

SB 1802*
HB 1296
(Full Text)

Exemptions for certain licensed wholesalers and retailers. Exempts certain sales of tangible personal property and services made by licensed wholesalers and retailers from a central warehouse or distribution point other than its principal place of business from sales and use tax. (S: Ketron; H: Sargent)
Senate Status: Referred to Senate Finance, Ways & Means.
House Status: Referred to House Finance Budget Subcommittee.

SB 1974*
HB 2158
(Full Text)

Alcoholic beverages sold for consumption on premises. Specifies that the burden of proving that a taxpayer's records are inaccurate for the purpose of projecting taxpayer sales of alcoholic beverages for on-premises consumption from the taxpayer's wholesale purchases shall be on the department of revenue, (S: Haynes; H: Briley)
Senate Status: Set for Senate State & Local Government 04/17/2007.
House Status: Set for House Local Government Subcommittee 04/18/2007.

 

 

  
 
©2005 Tennessee Wine & Spirits Retailers Association
P. O. Box 58083
Nashville, TN 37205
(615)298-8165