2007 Report Archive

04-20-07

04-14-07

04-06-07

03-30-07

03-23-07

03-16-07

03-09-07

03-02-07

02-23-07

02-16-07

02-09-07

02-02-07

01-26-07

01-19-07

01-12-07

2006 Year-End Report

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BUDGET BATTLE LOOMS

Governor Phil Bredesen says he’s talking with legislators about changes in funding for K-12 education. But the governor says those changes won’t include cutting back on the amount of money he believes is needed and how he wants to raise it. The governor stood firmly behind his proposed 40-cent a pack cigarette tax increase, which he says should bring in an additional 200-million dollars targeted for education. Bredesen stated this week that “Certainly, if it gets into the schools I certainly can be flexible about exactly what the formula is as to how it gets there or something like that. What I’m not interested in compromising in, is moving the 40 cents to 20 cents or 10 cents or …something like that. I think we ought to put a couple of hundred million dollars of new money …in education and that’s how we ought to do it.”  Bredesen was reacting to a statement by Senate Speaker Ron Ramsey, who last week argued that no one knows yet if the cigarette tax is needed. The revenue figures for April should be released by the end of next week.

There’s also more talk than ever this year on Capitol Hill of lowering the sales tax on grocery items. Tennessee’s tax on food is nearly ten cents on the dollar, making it one of the highest food taxes in the nation. About seven percent of that goes to the state with the remaining portion going to local government. Some lawmakers want to give a food tax holiday or cut the food tax altogether. Republican leaders are looking at numerous ideas on how to ease the cost of grocery bills, saying right now “they are all over the place on the thing”. One way would be to reduce the grocery tax on food or taking it all off during the holiday season for two months.

As far as committee calendars are concerned, most of the subcommittees in the House have shut down or will have their final meeting this week.  The House standing committee calendars are full.  Big issues still remaining to be heard (in both the Senate and the House) are: the cigarette tax increase, smoking bans, the AT&T state-wide franchise cable bill, and the budget.  The Senate proposed a deadline this week on Appropriation amendments. When the new revenue figures come out, there could be considerable one time money to spend.  The House has yet to put a filing deadline in place.

Don’t forget the sales tax holiday this weekend. A special one-time April sales tax holiday begins Friday, when shoppers can buy school supplies, computers and clothing without tax. Tax will not be charged on clothing costing $100 or less per item, computers costing $1,500 or less or school supplies costing no more than $100 per item.  The legislature set aside this extra money in last year’s budget to go along with the August sales tax holiday.   Please call if you have questions.

 

 

Tennessee Legislation Service (c) 2007 M. Lee Smith Publishers
Friday, April 27, 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: Taken off notice in 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: Set for Senate State & Local Government 05/01/2007.
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) House Local Government Subcommittee amendment 1 requires organization to have $1,000,000 annual budget. Also requires donated bottles of wine to be properly registered with the department of revenue.
Senate Status: Set for Senate State & Local Government 05/01/2007.
House Status: Set for House State & Local Government Committee 05/01/2007.

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: Set for Senate State & Local Government 05/01/2007.
House Status: Set for House Local Government Subcommittee 05/02/2007.

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: Set for Senate State & Local Government 05/01/2007.
House Status: Set for House Local Government Subcommittee 05/02/2007.

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: Set for Senate State & Local Government 05/01/2007.
House Status: Set for House Local Government Subcommittee 05/02/2007.

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: Senate Commerce, Labor & Agriculture deferred to 05/01/2007.
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: Senate State & Local Government 04/17/2007 recommended. Sent to Senate Finance, Ways & Means.
House Status: Set for House Local Government Subcommittee 05/02/2007.

 

 

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