Tennessee's 17 Percent Local Wholesale Beer Tax has generated more than $2.2 billion in tax
revenue since it was established more than 50 years ago. The 17 percent collections increase virtually
every year without any additional tax rate increase by law due to the fact that
it is applied on a percentage basis. The
tax automatically goes up as rising brewery and wholesaler operational costs
cause the wholesale price of beer to increase, as well as with higher sales
volume.
