SB 788 - HB 831
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 15, 2025
Fiscal Analyst: Elizabeth Bransford | Email: elizabeth.bransford@capitol.tn.gov | Phone: 615-741-2564
SB 788 - HB 831
SUMMARY OF BILL: Allocates, after all other distributions, three percent of the beer
barrel privilege tax to the Department of Agriculture (DOA).
FISCAL IMPACT:
STATE GOVERNMENT
REVENUE General Fund Department of Agriculture
FY25-26 & Subsequent Years ($355,100) $355,100
Assumptions:
• Pursuant to Tenn. Code Ann. §§ 57-5-201(a), 57-5-202(a), and 57-5-205:
o Beer barrelage tax is $4.29 per 31-gallon barrel stored, sold, distributed by gift or
sale, or manufactured in this state; and
o Beer barrelage tax collections are allocated as follows:
▪ 20.10 percent to the local government;
▪ 0.41 percent to the Department of Mental Health and Substance Abuse
Services;
▪ 11.66 percent to the Highway Fund;
▪ 4.00 percent to the Department of Revenue (DOR); and
▪ The remainder, or 63.83 percent to the General Fund.
• Total beer barrelage tax collections were $17,068,815 in FY23-24.
• Fiscal Review Committee staff’s current estimates for beer tax collection growth rates are
5.11 percent in FY24-25 and 3.35 percent in FY25-26.
• Total beer barrelage tax collections are estimated to be $18,542,056 ($17,068,815 x 1.0511 x
1.0335) in FY25-26. For the purposes of this analysis, this number is assumed to remain
constant into perpetuity.
• The proposed legislation allocates three percent of the General Fund allocation to DOA.
• Therefore, the recurring decrease in revenue to the General Fund and the corresponding
increase to DOA is estimated to be $355,062 ($18,542,056 x 63.83% x 3.0%) in FY25-26
and subsequent years.
SB 788 - HB 831 2
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director