Authority. T.C.A. §§ 57-3-301 through 57-3-308.
Description. This tax is on the sale or distribution by sale or gift of wine, beer and distilled spirits with an alcoholic content of more than 5 percent by weight. T.C.A. § 57-3-301.
Rate: $1.21 per gallon (32 cents per liter) of wine and $4.40 per gallon ($1.17 per liter) of distilled spirits. T.C.A. § 57-3-302. Notwithstanding T.C.A. § 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. T.C.A. §§ 57-3-303(l) and 57-3-308.
Distribution. The tax is distributed as follows:
a. Seventy-five (75%) percent of this amount is apportioned according to county population.
b. Twenty-five percent (25%) of this amount is apportioned according to county area.
c. However, thirty percent (30%) of the amount distributed to counties with a population of more than 250,000 is distributed to cities in the county with population over 150,000. T.C.A. § 57-3-306.