HB 942 - SB 1344
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
March 6, 2025
Fiscal Analyst: Elizabeth Bransford | Email: elizabeth.bransford@capitol.tn.gov | Phone: 615-741-2564
HB 942 - SB 1344
SUMMARY OF BILL: Authorizes the issuance of a retail package store license to qualified
applicants wishing to operate a package store within the general services district of the Metropolitan
Government of Nashville and Davidson County (Metro).
FISCAL IMPACT:
STATE GOVERNMENT
REVENUE Alcoholic Beverage Commission
FY25-26 >$1,200
FY26-27 & Subsequent Years >$900
Assumptions:
• Pursuant to Tenn. Code Ann. § 7-3-303(b), retail package store licenses are permitted to be
issued in the urban services district of a metropolitan government that has approved the
retail sale of liquor, wine, and beer, within its jurisdiction, for off-premises consumption by
local option election.
• The proposed legislation will allow retail package store licenses to be issued within the
general services district of Metro.
• It is unknown how many applicants will apply for a retail package store license as a result of
the proposed legislation. However, for the purposes of this analysis, it is assumed at least
one store operator will apply for and receive a retail package store license in the Metro
general services district.
• The application fee for a retail package license is $300 and the annual fee to operate a retail
package store is $850.
• The increase in state revenue to the Alcoholic Beverage Commission is estimated to be an
amount exceeding $1,150 ($300 + $850) in FY25-26.
• The increase in state revenue to ABC is estimated to be an amount exceeding $850 in
FY26-27 and subsequent years.
• There will be additional state and local tax revenue collections as the result of an additional
retail package store; however, it is assumed any additional sales at these locations will
cannibalize sales at other retail package stores. Thus, any additional revenue is estimated to
be not significant.
HB 942 - SB 1344 2
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director