Frequently Asked Questions

Q1: What is a manager’s permit and who is required to obtain a manager’s permit?

A: A TABC-issued manager’s permit allows an individual to operate, supervise, or manage the retail sales of alcoholic beverages or wine at a retail package store or serve as a designated manager at a retail food store. Retail package store managers and retail food store designated managers must obtain a manager’s permit from the TABC.

Q2: What is a certified clerk and who is required to become a certified clerk?

A: A certified clerk is an employee of a retail package store or retail food store who sells alcoholic beverages or wine, who has completed responsible vendor training, and is included on a retail package store’s or retail food store’s list of certified clerks submitted to the TABC. Employees who sell alcoholic beverages or wine at these businesses must be certified clerks.

Q3: How much time does an employee have to become a certified clerk?

A: An employee who is required to become a certified clerk must do so within sixty-one days of being hired or otherwise assuming the duties of selling alcoholic beverages.

Q4: If I currently have an unexpired TABC retail package store employee permit (blue card), do I have to obtain a manager’s permit or become a certified clerk?

A: Individuals holding an unexpired TABC employee permit (blue card) may perform the duties of a clerk until the expiration of their current TABC employee permit. The employee should take the steps necessary to become a certified clerk before the expiration of their TABC employee permit. An individual who holds an unexpired TABC employee permit (blue card) and who is performing the duties of a manager (operating, supervising, or managing the retail sales of alcoholic beverages or wine) must obtain a manager’s permit from the TABC.

Q5: What training is required for a manager’s permit?

A: To obtain, maintain, or renew a manager’s permit, an individual is required to annually complete the following required training:

1. Either a responsible beer vendor or a responsible wine vendor training course approved by the TABC; and
2. A one (1) hour course covering a review of recent changes in the law, applicable statues, rules, and regulations approved by the TABC.

Q6: What training is required to become a certified clerk?

A: To become a certified clerk, an individual must annually attend either a responsible beer vendor or a responsible wine vendor training course approved by the TABC.

Q7: What is required to obtain new manager’s permit or to renew a manager’s permit?

A: To obtain a manager’s permit from the TABC, an individual must do the following:

1. Attend either a responsible beer vendor or a responsible wine vendor training course approved by the TABC; and
2. Attend a one (1) hour course covering a review of recent changes in the law, applicable statues, rules, and regulations approved by the TABC.
   1. Create an RLPS account;
   2. Create a certified Manager application;
   3. Upload the required document (Government issued photo ID, Prove of Responsible Vendor training and prove of Legal Training); and 
   4. Pay the $50.00 application fee.

Q8: How do I know where I can take the required manager permit or certified clerk training and what is the cost?

A: The TABC does not set the cost for training programs and trainers are not employed by the TABC. Required training for manager permits and certified clerks is outlined in questions four (4) and five (5). For more information, contact Tabatha.Blackwell@tn.gov.

Q9: Must an individual licensed as a sole proprietor pursuant to § 57-3-204 or § 57-3-801 seq., obtain a manager’s permit?

A: No. An individual licensed as a sole proprietor is not required to obtain a manager’s permit. For this purpose, a sole proprietorship does not include any member, owner, or shareholder of an LLC, corporation, LLP, general partnership or any entity that is required to be registered with the Secretary of State. While the sole proprietor is not required to obtain a permit, other managers, who are not the sole proprietor owner, of the sole proprietorship must obtain a TABC manager’s permit and employees who sell alcoholic beverages or wine must become certified clerks.

Q10: What if I have a criminal history?

A: The TABC reviews applications for licenses and permits to determine whether the applicant has a criminal history that directly relates to the occupations under the regulation of the Commission, pursuant to the Fresh Start Act. The TABC will not consider any convictions that have been expunged from an applicant’s criminal history. For further information please follow the below link to a Director’s Memo on this topic:

• https://www.tn.gov/abc/public-information-and-forms/director-s-memos.html
  

Q11: Can a manager’s permit be suspended or revoked?

A: Yes. A manager’s permit may be suspended or revoked by the Commission for any violation of Title 57 of Tennessee Code Annotated, and/or the rules and regulations of the TABC, including not attending required annual training, or other violations committed by the holder of the manager’s permit or by any person operating under the supervision of the holder of the manager’s permit.

Q12: Can I hold a server permit card to sell alcohol for on-premise consumption, and also hold a manager’s permit card for off-premise consumption?

A: Yes. An individual who holds a manager’s permit may also seek to obtain a server’s permit from the TABC.

Q13: What is a designated manager at a retail food store?

A: A designated manager is an individual associated with a specific retail food store who must conduct all orders and purchases of wine for that particular retail food store location. Wholesalers are specifically prohibited from taking wine orders from anyone other than the retail food store’s designated manager. The designated manager is tied to the location of the retail food store licensee. In other words, ordering or purchasing wine at the corporate level is specifically prohibited under the WIGS law for retail food store licensees. All orders and purchases must be made by a designated manager associated with a specific retail food store licensee, not the corporate retail food store generally. Please note that a preorder of wine may be made by a person with a pending application for a retail food store license.

Q1: How is the twenty percent (20%) markup calculated?

The twenty percent (20%) markup is calculated by multiplying the per bottle price of a particular bottle of wine by one and two tenths (1.2). The per bottle price is located on the latest wholesaler invoice. This is the minimum price that a store may advertise or sell a bottle of wine. Calculation Example: If the per bottle price of a wine on the wholesaler invoice is $10.00, the minimum price the retailer may advertise or sell the bottle of wine is $12.00 ($10.00 x 1.2 = $12.00).

Q2: What must be included on a wholesaler’s invoice?

The invoice must show the per bottle cost for each bottle of wine sold to the retailer and must detail any taxes, fees, or charges applied to an order of wine. The per bottle cost must include all taxes, fees, and charges passed on from the wholesaler to the retailer. These charges include, but are not limited to:

• The gallonage tax;
• The enforcement tax;
• The municipal inspection fee;
• Any transportation costs or surcharge;
• Split case fee;
• Restocking charge; and
• Other costs.

Q3: What is appropriate advertising for the sale of wine?

A retailer cannot advertise the sale of wine below the required twenty percent (20%) markup. The following terms are prohibited:

• “Exclusive”
• “Exclusively”

Due to varying municipal inspection fees and quantity discounts, retailers must not advertise a per bottle price lower than the highest minimum per bottle price in the area the advertisement may reach. The phrase “select varieties” may only be used when advertising a brand, but not a specific type of that brand. If the phrase “select varieties” is used, then each wine type from that brand must be available at the advertised price. The language “select varieties” must not be used if the advertisement identifies a particular brand and type.

Q4: Are there exceptions to the twenty percent (20%) markup requirement?

Yes, the following exceptions are permitted:

1. During the final liquidation of the business;
2. Under the direction of a court, such as a bankruptcy court;
3. Closeouts; and
4. Case discounts. (The case discount exception expires after December 31, 2022.) 

Q4a: What is a closeout?

A closeout is a discount offered on a brand of wine which will no longer be sold by a particular retailer. The brand being offered at closeout must have been sold by the retailer at least one hundred twenty (120) days prior to the beginning date of a closeout sale. A closeout sale must not last longer than ninety (90) days. The brand of wine being offered for sale in a closeout cannot be sold by the retailer for at least one (1) year after the closeout sale is concluded.

Q4b: What is a case discount?

A case discount is a discount offered on a case of wine. A case of wine is any of the following groups of wines:

1. At least twelve (12) bottles of 750 ml wine;
2. At least six (6) bottles of 1.5 liter wine; or
3. At least four (4) boxes of 3 liter boxed wine.

A case may consist of various brands chosen by the consumer as long as it meets the above requirements of a case. The per bottle price in an advertisement cannot represent or assume a case discount, unless the requirement of a case purchase is conspicuously shown in the advertisement.

(The case discount exception expires after December 31, 2022.) 

Q5: Can a retailer sell wine below cost?

No. A retailer may not sell wine, or any other alcoholic beverage, below the cost the retailer paid to the wholesaler for the alcoholic beverage. There are no exceptions to this requirement. Even in cases where a retailer sells wine below the 20% minimum markup (e.g. a case discount or a closeout) the retailer may not sell such wine below the per bottle cost paid to the wholesaler for the wine.

Q6: Can discount cards be used to discount wine?

No, discount cards or customer loyalty programs cannot be used for discounts on wine nor advertised for use on wine. For example, a loyalty program that provides discounts based upon the customer’s purchasing frequency may not apply to the purchase of wine.

Q7: Is a designated manager* required to accept delivery of wine?

No, this is not required for either retail food stores or retail package stores.

Q8: Is a designated manager* required to be present at all times wine is permitted to be sold?

No, this is not required for either retail food stores or retail package stores. *A designated manager may also be referred to as a certified manager.

Q9: What is a “wine” that may be sold at retail food stores?

The new law defines wine as follows: “Wine” means the product of the normal alcoholic fermentation of the juice of fresh, sound, ripe grapes, with the usual cellar treatment and necessary additions to correct defects due to climatic, saccharine and seasonal conditions, including champagne, sparkling and fortified wine of an alcoholic content not to exceed eighteen percent (18%) by volume. No other product shall be called “wine” unless designated by appropriate prefixes descriptive of the fruit or other product from which the same was predominantly produced, or an artificial or imitation wine. “Wine” does not mean alcohol derived from wine that has had substantial changes to the wine due to the addition of flavorings and additives.

The commission will analyze particular products on a case-by-case basis to determine whether a product may be sold as wine in a retail food store. In determining which products are included in the definition of “wine” at T.C.A. § 57-3-802(2), the following factors, among others, will be considered:

• Whether the product has had substantial changes due to the addition of flavorings and additives;
• Whether the product had been sold in grocery, convenience, and similar stores before July 1, 2016;
• The specific nature of the product and the manufacturing process; and
• The manner in which the product is marketed and labeled.

The nature of the product and the manufacturing process are critical factors for determining whether a product is included in the definition of “wine” at T.C.A. § 57-3-802(2). The labeling, suffix, or prefix of the product as descriptive of a fruit or other suitable agricultural product, and as descriptive of a wine, is another critical factor for determining whether a product is included in the definition of “wine” at T.C.A. § 57-3-802(2). “Suitable agricultural product” does not include grain, cereal, malt, or molasses. Wine does not include any product that contains caffeine, mood enhancers, or other stimulants. Wine does not include any product that is marketed to appear or bottled to appear as an imitation liquor or cocktail substitute, including any product that appears to contain vodka, whiskey, rum, gin, tequila, applejack, mescal, liqueur, or cordial. Wine is not a product marketed or labeled as “cider,” and nothing in this part should affect the marketing of cider products distributed as beer by wholesalers permitted under § 57-5-103.

• Please refer to the TABC’s Public Information and Forms Page for a determination of allowed and prohibited products for WIGS.

Q10: Am I required by state law to check the identification of a person purchasing wine in a retail food store? 

A: Yes, a retail food store must check the identification of any person who does not reasonably appear to be an age of fifty (50) years or older in a face-to-face transaction prior to the sale of the wine.  The identification checked must be a valid (unexpired), government-issued (state, local, national, or foreign) document that, includes the photograph and the birth date of the customer. Any identification that meets such requirements may be accepted by the retail food store.  The sale of alcoholic beverages or beer to a minor or a failure to check for identification is a Class A misdemeanor under state law.

Q11:  What are the authorized days and hours of sale for wine in retail food stores? 

Before January 1, 2019, retail food stores may only sell wine Monday through Saturday from 8:00 A.M. to 11:00 P.M.  A retail food store shall not sell wine on Sundays, Christmas, Thanksgiving, or Easter.

Beginning January 1, 2019, retail food stores may only sell wine between the hours of 8:00 A.M. and 11:00 P.M. on Monday through Saturday and between 10:00 A.M. and 11:00 P.M. on Sunday.  A retail food store shall not sell wine on Christmas, Thanksgiving, or Easter.

This change in the law will have no impact on the hours in which beer can be sold at a retail food stores.  For questions about hours of sale for beer at a food store, please contact your local beer board.  

Q1: Am I required by state law to check the identification of a person purchasing alcoholic beverages?

A: Yes. A retail package store must check identification for any person who does not reasonably appear to be an age of fifty (50) years or older in a face-to-face transaction prior to the sale of alcoholic beverages. The identification checked must be a valid (unexpired), government-issued (state, local, national, federally recognized tribe, or foreign) document that includes the photograph and birth date of the customer. Any identification that meets such requirements may be accepted by the retail package store. The sale of alcoholic beverages or beer to a minor or a failure to check for identification is a Class A misdemeanor under state law.

Q2: Is my retail package store required to post a pregnancy warning or any other documents?

A: Yes. If a licensee sells alcoholic beverages, then the pregnancy warning sign must be posted in a prominent place, easily seen by customers. Failure to post this sign could lead to a warning from TABC staff. After the warning, the establishment can be assessed a twenty-five dollar ($25) fine per day. The required sign may be obtained from a TABC office. A retail package store must also post its TABC license and certificate of occupancy issued by the local jurisdiction.

Q3: How long must a retail package store maintain records?

A: Retail package stores must maintain records for three (3) years. The records must be made available for inspection to the TABC and the Tennessee Department of Revenue. Failure to do so could lead to revocation of the license. For purposes of this requirement, records in electronic format are acceptable if they are readily available and easily accessible.

Q4: How soon must wholesaler invoices be paid and what are the potential consequences for failing to timely pay wholesaler invoices?

A: A wholesaler may set their own terms for the payment of invoices (such as cash on delivery), but a wholesaler may not extend credit to a retail package store for more than ten (10) days on which the wholesaler is open for business. If a wholesaler has not received payment within ten (10) days, the wholesaler is required to report such delinquent payment to the TABC. Potential consequences for failure to timely pay debts include fine, non-renewal, or revocation of the package store's license.

Q5: May tastings occur at a retail package store?

A: Yes. Complimentary samples are allowed. A retail package store may conduct tastings for free on the premises of the retail package store during the hours the store is open for business. In order to do so, the retail package store must first give the TABC notice of its intent to conduct tastings at the time of license application, renewal, or thereafter, if the store later decides it would like to conduct tastings. Samples may not exceed two ounces (2 oz.) for each wine or high gravity beer sample and may not exceed one half ounce (½ oz.) for each liquor sample. A retail licensee or employee of the licensee may participate in the tasting. Employees of a retail package store do not need a server permit to pour such samples. The Commission will not consider a fully refundable reservation fee to be charging a fee for samples.

Q6. When must an employee of a retail package store possess a manager’s permit?

A: A TABC-issued manager’s permit allows an individual to operate, supervise, or manage a retail package store. Employees who perform these functions for a retail package store must obtain a manager’s permit.

Please note an individual licensed as a sole proprietor is not required to obtain a manager’s permit. For this purpose, a sole proprietorship does not include any member, owner, or shareholder of an LLC, corporation, LLP, general partnership, or any entity that is required to be registered with the Secretary of State. While the sole proprietor is not required to obtain a permit, other managers who are not the sole proprietor owner of the sole proprietorship must obtain a TABC manager’s permit.

For more information on manager permits, training requirements, and certified clerks, please see our FAQ page on this issue.

Q7: If I currently have an unexpired TABC retail package store employee permit (blue card), do I have to obtain a manager’s permit or become a certified clerk?

A: Individuals holding an unexpired TABC employee permit (blue card) may perform the duties of a clerk until the expiration of their current TABC employee permit. The employee should take the steps necessary to become a certified clerk before the expiration of their TABC employee permit. An individual who holds an unexpired TABC employee permit (blue card) and who is performing the duties of a manager (operating, supervising, or managing the retail sales of alcoholic beverages or wine) must obtain a manager’s permit from the TABC.

Q8: What items may be sold at a retail package store?

A: A retail package store may sell intoxicating liquors, wine, high gravity beer, and beer. A retail package store is also permitted to advertise or sell items related to or incidental to the use, consumption, dispensing, or storage of alcoholic beverages, together with merchandise and supplies related to special events or parties. The list of items a retail licensee may sell, contained in T.C.A. § 57-3-404(e)(4), is illustrative in nature and non-exclusive. If you have questions on whether an item is allowed, please contact our staff. Such authorized items include, but are not limited to:

• Newspapers, magazines, publications, videos, and other media related to alcoholic beverages or food;
• Utensils and supplies related or incidental to the use, consumption, dispensing or storage of alcoholic beverages, including, without limitation, corkscrews, beverage strainers, pourers, flasks, jiggers, stirrers, wine racks, wine refrigerators, wine cellars, decanters, carafes, glassware, ice crushers, bottle openers, can openers, and devices to maximize oxidation in uncorked wine bottles and other items used in connection with the consumption, storage or dispensing of alcoholic beverages;
• Gift cards, packages and baskets that include alcoholic beverages, and nonalcoholic items;
• Nonalcoholic beverages;
• Kegs and growlers, whether empty or filled with beer, wine, or alcoholic beverages, on the licensed premises;
• Concentrates and ingredients used in the preparation of mixed alcoholic beverages;
• Beer and wine-making kits;
• Products and supplies related to beer and wine-making;
• Lemons, limes, cherries, olives, and other food items used in the preparation or garnishment of alcoholic beverages or mixed alcoholic beverages;
• Peanuts, pretzels, chips, cheese, crackers, appetizers, and other snack foods;
• Beverage coolers, ice chests, and ice in any form;
• Party supplies, party decorations, gift bags, greeting cards, and other items for parties and special events;
• Articles of clothing and accessories imprinted with advertising, logos, slogans, trademarks, or messages related to alcoholic beverages;
• Combined packages containing multiple alcoholic beverages;
• Cigarettes, cigars, and lighters and other smoking or tobacco related products; and
• Lottery tickets, if the retailer's application is approved by the Tennessee education lottery corporation as provided in § 4-51-115(e).

In interpreting this list, the TABC has determined that e-cigarettes and most food items are permitted to be sold. The TABC has also authorized the sale of propane, as it is reasonably related to special events or parties. A retail package store may have an ATM in their store, provided that the store does not permit EBT cards and similar welfare payment cards to be accepted within the store via ATM or otherwise.

Q9: How many retail package stores may I own?

A: A person may only have interest in two (2) retail package stores. Generally, a new license may not be issued to someone whose spouse would be ineligible to receive a license. If a municipality does not allow more
than three (3) package stores within the municipality, a person may only have interest in one (1) retail package store within that municipality. For the purposes of this restriction, any amount of interest must be taken into account. For example, a person could neither have a one-percent (1%) interest in three (3) stores nor be the sole owner of three (3) stores. 

Q10: If I own more than one retail package store, may I order alcohol in bulk for both locations or swap inventory between the two locations?

A: No. Each retail package store must be operated in a completely independent manner from all other retail package stores, and stores cannot combine purchasing power or swap inventory. Doing so could expose the store to regulatory fines, revocation of the store’s license, or criminal prosecution.

Q11: What are the authorized days and hours of sale for my retail package store?

A: A retail package store may only be open between the hours of 8:00 A.M. and 11:00 P.M. on Monday through Saturday and between 10:00 A.M. and 11:00 P.M. on Sunday. Additionally, retail package stores must be closed for business on Christmas, Thanksgiving, and Easter.  Businesses that have a package store license with the TABC may also sell beer on Sundays starting at 10:00 A.M.

Q12: May a retail package store deliver alcoholic beverages to residents of Tennessee?

A: Yes, a retail package store may deliver alcoholic beverages. No additional permit, license, or approval is needed from the TABC in order for a package store to deliver alcoholic beverages, but such delivery is subject to the following restrictions:

• Before making such deliveries, a package store must inform the TABC of the store’s intent to deliver and must post a $1,000 bond with the TABC.  Please send the bond, and any questions about the bond, to Meenu Sinha at Meenu.Sinha@tn.gov or 615-741-7624;        
• The delivery must be made to only the physical address indicated by the individual placing the order and delivery must be documented by a verification of delivery, signed by the order recipient;      
• The order and delivery of alcoholic beverages must occur only during authorized hours of sale;        
• A retail package store may not deliver to licensed liquor-by-the-drink establishments, with the exception of hotels;        
• Only the actual employees of a retail package store may deliver on behalf of the package store, and the package store may not contract with any other business or person to make such deliveries on the store’s behalf, except a TABC-licensed delivery service;        
• The retail package store must check the ID of the purchaser at the time of the delivery of the alcoholic beverages in a face-to-face transaction, unless the purchaser reasonably appears to be over fifty (50) years of age;        
• The identification checked must be a valid (unexpired), government-issued (state, local, national, or foreign), document that includes the photograph and birth date of the customer;        
• A record of all deliveries must be maintained in writing and must contain all information concerning the deliverer, recipient, products delivered, the time of delivery, and the place of delivery; and
• No license is required for technology service companies and application based platforms for connecting customers or retailers to a delivery driver for the delivery of alcoholic beverages or beer from the retailer.  

Q13: Is there a minimum markup on alcoholic beverages sold in a retail package store?

A: Yes.  Wine must be marked up at least twenty percent (20%).  Please review the Wine in Grocery Stores and Unfair Wine Sales Law FAQ for more information. Other alcoholic beverages, including liquor, spirits, and high gravity beer, must be marked up at least ten percent (10%).  These minimum markups do not apply to low gravity beer. Please review the following questions for more information.   

Q14: How is the ten percent (10%) markup calculated? 

A: The ten percent (10%) markup is calculated by multiplying the per bottle price of a particular bottle of liquor, spirits, or high gravity beer by one and one tenth (1.1). The per bottle price is located on the latest wholesaler invoice. This is the minimum price that a store may advertise or sell a bottle of liquor, spirits, or high gravity beer. Calculation Example: If the per bottle price of a spirit on the wholesaler invoice is $10.00, the minimum price the retail package store may advertise or sell the bottle of that spirit is $11.00 ($10.00 x 1.1 = $11.00).

Q15: What must be included on a wholesaler’s invoice?

A: The invoice must show the per bottle cost for each alcoholic beverage sold to the retailer and must detail any taxes, fees, or charges applied to an order of alcoholic beverages. The per bottle cost must include all taxes, fees, and charges passed on from the wholesaler to the retailer. These charges include, but are not limited to:

• The gallonage tax;
• The enforcement tax;
• The municipal inspection fee;
• Any transportation costs or surcharge;
• Split case fee;
• Restocking charge; and
• Other costs.

Q16: Are there exceptions to the ten percent (10%) markup requirement?

A: Yes the following exceptions are permitted:

1. During the final liquidation of a business;
2. Under the direction of the court;
3. Closeouts; and
4. Case discounts. (The case discount exception expires after December 31, 2022.) 

Q17: What is a closeout?

A: A closeout is a discount offered on a brand of liquor, spirits, or high gravity beer which will no longer be sold by a particular retailer. The brand being offered at closeout must have been sold by the retailer at least one hundred twenty (120) days prior to the beginning date of a closeout sale. A closeout sale must not last longer than ninety (90) days. The brand of liquor, spirits or high gravity beer being offered for sale in a closeout cannot be sold by the retailer for at least one (1) year after the closeout sale is concluded.

Q18: What is a case discount?

A: A case discount is a discount offered on a case of liquor, spirits, or high gravity beer. A case of liquor or spirits is any of the following groups:

1. At least six (6) bottles of 1.75 liter liquor or spirits;
   2. At least twelve (12) bottles of 1 liter liquor or spirits;
   3. At least twelve (12) bottles of 750 ml liquor or spirits; or
   4. At least twenty four (24) bottles of 375 ml liquor or spirits.

A case may consist of various brands chosen by the consumer as long as it meets the above requirements of a case. The per bottle price in an advertisement cannot represent or assume a case discount, unless the requirement of a case purchase is conspicuously shown in the advertisement. 

(The case discount exception expires after December 31, 2022.) 

Q19: Can a retail package store sell alcoholic beverages below cost?

A: No, a retail package store generally may not sell alcoholic beverages below cost. The only exception is during the final liquidation of a business. A retail package store is allowed to sell alcoholic beverages below cost in the event the licensee is not in debt with any wholesaler and provides a thirty day, irrevocable notice of surrender of its license to the Commission. Even during the final liquidation of a business when a retail package store may sell alcoholic beverages below cost, it may not reduce the price lower than ten percent (10%) of the purchase price from the wholesaler. During the 30 day liquidation period, a package store may not make any additional orders from wholesalers of any alcoholic beverage product that is sold below cost pursuant to these provisions. Calculation Example: If the per bottle price of a spirit on the wholesaler invoice is $10.00, the minimum price the retail package store may advertise or sell the bottle of that spirit during a final liquidation sale is $1.00 ($10.00 x 0.1 = $1.00). A retail package store may sell low gravity beer below cost. 

Q. I’m a Manufacturer and want to conduct a consumer tasting at a Retail Package Store. What do I do? 

A.:Tennessee law allows licensed Manufacturers to provide complimentary samples for, and participate in, tastings for consumers at Retail Package Stores. The Manufacturer must adhere to the following guidelines to conduct this type of tasting.  

• The Manufacturer transfers products used for tastings to a licensed Wholesaler.
• The Manufacturer requests that the Wholesaler transport the products to the Retail Package Store where the tasting will occur. 
• The Manufacturer may not transport the products to the Retail Package Store. 
• The Wholesaler must transport the products to the Retail Package Store before the tasting occurs.  
• A valid invoice must accompany the products so that the Retail Package Store ultimately takes title to the products. A standard Wholesaler invoice for “$0.00” may be used for this transfer. This practice is commonly referred to as a “paper transfer.” 
• The Manufacturer may participate in the tasting, including handling the products. 
• After the tasting, any remaining product provided in this manner must remain at the Retail Package Store. The Retailer must conspicuously label it as “Not for Resale” if not already so labeled. The Retail Package Store may use this product in future tastings with or without the Manufacturer at the premises. 
• The Gallonage Tax applies to the product used for samples. The Wholesaler typically remits this tax to the Department of Revenue. The Manufacturer and Wholesaler shall create and maintain records in a manner that reasonably identifies which products were used specifically for tastings at Retail Package Stores. The Manufacturer’s records should separately identify these
  products used at Retail Package Store tastings from any products used for consumer samples on the licensed premises of the Manufacturer. 

Q1: Who is required to have a wholesaler employee permit?

A: Any employee of a wholesaler who is directly involved with the delivery or sale of alcoholic beverages must obtain a wholesaler employee permit from the TABC. Employees involved only in warehousing, administrative, or clerical services for a wholesaler are not required to obtain a wholesaler employee permit.

Q2: Who is required to have a wholesaler representative permit?

A: Any wholesaler employee who solicits orders for alcoholic beverages or beer must obtain a wholesaler representative permit from the TABC. "Solicit" means the exchanging of consideration (value), or the promise to pay, for goods or services.

Q3: How long must wholesalers maintain records?

A: Wholesalers must maintain records such as purchase orders, invoices, and all other records of purchases, donations, and sales of alcoholic beverages for three (3) years. The records must be made available for inspection to the TABC and the Tennessee Department of Revenue. Failure to do so could lead to revocation of the license.

Q4: May a wholesaler store inventory on the second floor of the premises?

A: A licensee must obtain written permission from the TABC to store alcoholic beverages in any place other than the ground floor.

Q5: May a wholesaler store product for a retailer?

A: No. A wholesaler cannot store product for a retailer. Please note that the delay in delivery beyond the normal and customary delivery practices of the wholesaler constitutes providing improper storage for a retailer.

Q6: Must a wholesaler document breakage or deterioration of product?

A: Yes. If a wholesaler has product in the premises that is broken or deteriorated, it must document the removal of the product from its inventory. A wholesaler must also maintain documentation of removal from a retailer’s inventory due to breakage or deterioration.

Q7: What are the marking requirements for wholesaler vehicles?

A: A wholesaler vehicle must have wholesaler name, permit number and address on each side and rear of the vehicle. The wholesaler name must be no less than four inches (4”) in height, address not less than two and one half inches (2 ½”) in height, and license number not less than one and one half inches (1 ½“) in height. The only abbreviations permitted are “Tenn.,” “Co.,” and “Inc.”

Q8: Should the wholesaler license be posted in my establishment?

A: Yes. The TABC wholesaler license must be posted in a conspicuous location.

Q9: Can a wholesaler donate alcohol?

A: Yes. A wholesaler may donate alcohol to a special occasion licensee or a representative of the special occasion licensee for use at the licensed event. Please note that wholesalers must maintain records of donations for three (3) years.

Q10: What must be included on a wholesaler’s invoice?

All discounts MUST BE CONSPICUOUSLY DISPLAYED on the wholesaler’s invoice. This includes any and all discounts, including, but not limited to, those related to “fill-ins” or “family plans”, as those terms are defined in this FAQ document. The wholesaler MUST also provide the prior invoice number and date that refers back to the originally discounted purchase of product. Please note that TABC agents have the authority to enter your wholesale premises at any time to request and see copies of invoices.

Q11: May a wholesaler provide a discounted price to on- or off-premises retailers?

Subject to the proscriptions detailed in federal and state law as summarized below, wholesalers may provide quantity discounts to on- or off-premise retailers. The same price and the same discount must be made available to all retailers within the same license type (on-premise licensees or off-premise licensees).

Q12: What is a buy back?

A buy back is where a wholesaler buys back, refunds, credits, or in some way compensates a retailer for unused product. Please note that this does not apply to product returned for “ordinary and usual commercial reasons”. A buy back occurs when a retailer pays a wholesaler for a product, with the understanding that if the retailer is unable to sell the product, then the wholesaler will “buy back” the product from the retailer. A “buy back” transaction is a consignment sale (i.e., a “conditional sale” or a “sale with the privilege of return”) and it is prohibited under TABC rules and federal regulations. See Rule 0100-03-.14 and the U.S. Department of the Treasury’s Alcohol and Tobacco Tax and Trade Bureau (TTB) link below. If a wholesaler agrees (either before or after delivery) to reclaim the unsold product of the retailer, then a consignment sale has occurred. A wholesaler may not make any offer to buy back product from a retailer. Federal regulations prohibit consignment sales. See https://www.ttb.gov/trade-practices/federal-alcohol-administration-act-provision-consignment-sales

EXAMPLE: A retailer purchases 25 cases of product from a wholesaler, but some of the product is not selling at a satisfactory rate at the retail level. The wholesaler then picks up 15 cases of the original 25 case deal of the product, and gives the retailer credit (or cash) for the 15 cases. This is a buy back and a consignment sale, both of which are prohibited under TTB regulations.

Q13: What is a swap?

A swap occurs when a retailer purchases product from a wholesaler and, at a later time, the wholesaler exchanges the originally purchased product with another product type. A swap transaction is a consignment sale (i.e., a “conditional sale” or a “sale with the privilege of return”) and is prohibited. If a wholesaler agrees (either before or after delivery) to reclaim the unsold product of a retailer, then a consignment sale has occurred. TABC rules and federal regulations prohibit consignment sales. However, the exchange of a product for equal quantities (case for case) of the same type and same brand of product, in containers of another size, is not prohibited under TABC rules. See TABC Rule 0100-06-.02(10).

EXAMPLE: A retailer purchases 4 cases of Mockingbird Rum and, at a later time, the wholesaler swaps 2 of the delivered cases, in exchange for 2 cases of Iris rum. This is a swap and it is also a consignment sale, which is prohibited.

EXAMPLE: A retailer purchases 4 cases of Mockingbird Rum in 750ml bottles and, at a later time, the wholesaler swaps 2 of the delivered cases, in exchange for 2 cases of Mockingbird Rum in 200ml bottles. This is authorized because it is an exchange of product for equal quantities (case for case) of the same type and of the same brand of product, but just in containers of another size. See TABC Rule 0100-06-.02(10).

Q14: Are there any circumstances where a retailer may return product to a wholesaler?

The general rule is that the purchase of a product is a one-way transaction where the wholesaler delivers the product, and no product may be returned to the wholesaler after the delivery (i.e., a sale occurs where possession/control are relinquished). However, a retailer may return product to a wholesaler in limited circumstances, or where the delivered product is returned for “ordinary and usual commercial reasons”. Authorized “ordinary and usual commercial reasons” for returning products, are outlined at the following TTB link: http://www.ecfr.gov/cgi-bin/text-idx?SID=eddaa2648775eb9b2423247641bf5758&mc=true&node=pt27.1.11&rgn=div5

Please note that the return or exchange of a product because it is overstocked or slow-moving does not constitute a return for “ordinary and usual commercial reasons”. The return or exchange of products for which there is only a limited or seasonal demand also does not constitute a return for “ordinary and usual commercial reasons”. 

Q15: What is a fill-in?

A fill-in occurs when a retailer buys product of a certain quantity at a certain price point (discount level) from a wholesaler, and then the same retailer is offered the option of buying a smaller amount of the same product for a window of time after the original purchase at the same discounted price point, even though the fill-in order (the second purchase) is at a lower quantity than the original purchase.

EXAMPLE: A wholesaler offers a deal that if a retailer buys 10 cases or more, then the same retailer may buy up to 4 additional cases (the fill-in order) at the same price/case discount as the original order of 10 cases or more, for a period of 30 days after the original delivery.

EXAMPLE: A wholesaler offers and a retailer purchases a case deal with multiple products in different sizes, flavors, varieties, and of a certain quantity to receive a discount. The wholesaler allows the retailer to purchase a smaller amount of the multiple products for a period of 30 days after the original purchase at the same price/discount level of the original deal in order to adjust the retailer’s sold inventory.

Q16: Under what circumstances is a fill-in order allowed?

One (1) fill-in order is permissible based upon one (1) previous quantity discount; provided, that the fill-in order is exercised within 30 days of the delivery date of the latest invoice showing a quantity discount. Please note that ALL quantity discounts must be offered to ALL retailers within the same license type (i.e. all on-premise licensees or all off-premise licensees).

A wholesaler may offer a retailer the option to fill-in one (1) previous purchase of product for a period not to exceed 30 days; provided that the discounted price(s) in the fill-in order are the same prices contained in the original quantity discount. Please note that this is NOT a buy back scenario. In other words, the wholesaler is not allowed to buy back, refund, credit, or in some way compensate a retailer for unused product. To the contrary, the wholesaler is allowing the retailer to replenish its inventory to account for products already purchased by customers at the retail level. The retailer must not be under any contractual obligation to exercise its option to purchase a fill-in order based upon the original purchase.

EXAMPLE: A wholesaler offers all retailers a 100 case deal of a product for $10,000, and also offers all retailers the one-time option to place a fill-in order on the original 100 case deal purchase for 30 days. The fill in order allows the retailer to purchase any amount of product sold in the original deal on the same terms and conditions of the 100 case deal. Thus, for 30 days after the 100 case discount delivery, the same retailer could also purchase, by means of one (1) fill-in order:

• 1 case for $100.00; or
• 20 cases for $2,000; or
• 50 cases for $5,000; or
• Any case amount for $100.00 a case.

EXAMPLE: A wholesaler offers the following case discounts for 30 days, beginning March 1 through March 31. The wholesaler also allows a one-time fill-in order on the same price terms of the originally selected case discount, for a period of 30 days after the delivery of the original purchase. The wholesaler provides each of the following case discounts:

• 100-150 cases for $100.00 a case;
• 151-200 cases for $90.00 a case;
• 201-250 for $80.00 a case.
  • I. HYPOTHETICAL: A retailer purchases 100 cases on March 2. On March 15, the same retailer is in need of 40 additional cases. Based upon the original case discount, the retailer is authorized to purchase 40 cases for $100.00 a case. The fill in order occurs within the 30 day window, and the fill in order is on the same terms as the original discount.
  • II. HYPOTHETICAL: A retailer purchases 100 cases on March 2. On March 15, the same retailer is in need of 51 additional cases. Based upon the original case discount, the retailer is authorized to purchase 51 cases for $100.00 a case. However, the retailer is not authorized to combine the original purchase (100 cases) and the fill-in order (51 cases) to secure a case discount of $90.00 a case. The fill in order is exercised within the 30 day window; however, the fill-in order must be on the same price terms contained in the original quantity discount, $100.00 a case. In other words, the fill-in purchase must remain within the same discount tier as the original purchase.

Q17: Can a retailer’s ability to purchase one product be contingent on the purchase of another product?

No. Under TABC rules, a wholesaler cannot require a retailer to purchase one product in order to purchase another product. See TABC Rule 0100-06-.02(6). However, a wholesaler may offer discounts on combination sales of multiple brands of product.

EXAMPLE: A wholesaler will not allow a retailer to purchase Mockingbird rum because that retailer will also not purchase Tulip Poplar whiskey. Because the purchase of one brand is contingent on the purchase of the other brand, this is prohibited.

EXAMPLE: A wholesaler only makes Mockingbird rum available for purchase, if a retailer purchases Mockingbird rum in combination with one or more other products. This is prohibited.

EXAMPLE: A wholesaler offers a discount on Tulip Poplar whiskey when a retailer also purchases Mockingbird rum. Both Tulip Poplar whiskey and Mockingbird rum may each be purchased individually at the usual price. Because the wholesaler is not requiring the purchase of one brand in order to purchase another brand and is simply offering a combination discount, this is not prohibited.

Q18: What are family plans?

A family plan occurs when a wholesaler offers a retailer the ability to buy multiple products or brands as part of a case deal to reach a certain discount level. The products or brands are usually from the same manufacturer/supplier. Under TABC rules, a wholesaler is authorized to structure deals that combine multiple products or multiple brands in certain circumstances. See TABC Rule 0100-06-.02(6).

Q19: Under what circumstances are family plans allowed?

Under TABC Rule 0100-06-.02(6), a wholesaler is authorized to combine two or more kinds of brands of product; provided, that (1) the retailer still has the option to purchase each product individually at the usual price and (2) the retailer is not required to purchase product that the retailer does not want to purchase.

In other words, the ability to PURCHASE cannot be dependent on the retailer’s purchase of another product; however, DISCOUNTS may be dependent on the retailer’s purchase of one product in order to receive another product, if each product is individually available at the usual price.

EXAMPLES:

• A wholesaler may offer deals based upon the combined purchase of multiple sizes of one (1) brand;
• A wholesaler may offer deals based upon the combined purchase of multiple varieties/types of one (1) brand;
• A wholesaler may offer deals based upon the combined purchase of multiple sizes and multiple varieties/types of the one (1) brand;
• A wholesaler may offer deals based upon the combined purchase of multiple brands from one (1) supplier/manufacturer;
• A wholesaler may offer deals based upon the combined purchase of multiple brands from multiple suppliers/manufacturers;
• A wholesaler may offer deals on certain brands in exchange for an on-premise retailer using other brands as “well” or “house brands”.

Please note, however, that a wholesaler may not structure any of the above family plan deals, as the sole means of purchasing one particular product at the usual price. Each product must always be available individually.

Q20: May cumulative discounts be offered to retailers?

State law specifically prohibits wholesalers from offering cumulative discounts. This prohibition applies to all licensed retailers, including retail food stores, retail package stores, and Liquor-by-the-Drink licensees.

Q21: May a wholesaler provide any service for the benefit of a retail food store?

No. A wholesaler generally may not provide any "service" for the benefit of a retail food store. This prohibition of services to retail food stores includes many activities that a wholesaler may do at a retail package store. However, despite this general prohibition on "services" at retail food stores, a wholesaler may provide items like product displays, shelves, and signs under certain circumstances. These may only be provided to a retail food store’s designated manager. The wholesaler may not provide any service or action regarding such item aside from providing the item to the designated manager, except that a wholesaler may build and stock wholesaler displays of wine and may restock such displays for up to one month after the display was installed. Such displays may not be a part of the food store’s regular shelving. Additionally, any product display that a wholesaler provides to a retail food store must bear advertising matter about the product or the industry member providing the product display. As a result, a wholesaler’s actions to ensure that the display bears the appropriate advertising matter do not constitute a prohibited “service” for the benefit of a retail food store. See Tenn. Code Ann. § 57-3-815; TABC Rules 0100-06-.03(2)(b)(3) and 0100-11-.07.

Q22: If a wholesaler sells both wine and beer to a retail food store, may the wholesaler provide services related to beer for the benefit of the retail food store?

Yes. Even though state law prohibits a wholesaler from providing services related to wine to a retail food store, state law does not prohibit a wholesaler from providing services related to beer to a retail food store. This means that a wholesaler could, for example, stock beer at a retail food store to which the same wholesaler also delivers wine, subject to local ordinances or federal law. The wholesaler could not do the same with the wine that it delivers to the retail food store. See TABC Rule 0100-11-.07(2), (3).

Q1: Is my restaurant or limited service restaurant required to post a pregnancy warning?

A: Yes. If the establishment sells alcoholic beverages, the pregnancy warning sign must be posted in a prominent place, easily seen by customers. Failure to post this sign could lead to a warning from TABC staff. After the warning, the establishment can be assessed a twenty-five dollar ($25) per day fine. The required sign may be obtained from a TABC office.

Q2: What else should be posted in my establishment?

A: A restaurant or limited service restaurant should also post its TABC license, health inspection report, and certificate of occupancy issued by the local jurisdiction.

Q3: When must a server obtain a permit from the TABC?

A: A server has sixty-one (61) days from the time he or she begins serving at any establishment to obtain a server permit from the TABC. A server permit expires after five (5) years and must be renewed before expiration. An individual who held a server permit in the past is not eligible for the sixty-one (61) day grace period if he or she has allowed the server permit to expire.

Q4: Are restaurants or limited service restaurants required to have copies of server permits for each server?

A: Yes. Licensees are required to maintain copies of server permits for all employees. For purposes of this requirement, server permits in electronic format are acceptable if they are readily available and easily accessible.

Q5: Is my restaurant or limited service restaurant required to notify the TABC of a manager hire?

A: Yes. A manager questionnaire must be filed with the TABC within seven (7) days after hire.  The manager questionnaire form should be submitted through RLPS as an amendment to the license.

Q6: What is the minimum seating requirement for a restaurant or limited restaurant?

A: Restaurant and limited service restaurants are required to maintain minimum seating for forty (40) people.

• The license fee for a restaurant is determined by the number of seats in the establishment as determined by the TABC inspection.
• The license fee for a limited service restaurant is determined by the percentage of food sold at the establishment.

Q7: Are restaurant and limited service restaurants required to maintain records?

A: Licensees are required to make records available, on request, to TABC staff. The TABC recommends maintaining records for three (3) years. For this purpose, electronic records are acceptable if they are readily available and easily accessible.

Q8: May my establishment advertise?

A: Yes, a restaurant and limited service licensee may advertise. However, the following is prohibited:

1. A licensee shall not advertise free alcoholic beverages;
2. A licensee shall not advertise an alcoholic beverage sold below cost; and
3. A licensee shall not have its advertising cost reimbursed by a supplier.

Q9: Can my establishment give away free drinks?

A: No. Providing free alcoholic beverages is not permitted. An establishment also may not sell alcoholic beverages below cost.

Q10: Can my establishment conduct “Happy Hour” specials?

A: Yes. Licensees may conduct “Happy Hour” specials until 10:00 p.m. local time. After 10 p.m. the following is prohibited:

1. Serving two or more drinks or containers of alcoholic beverages to a consumer at one time; and
2. Increasing the volume of alcohol contained in a drink without proportionately increasing the price charged for the drink.

General discounts on alcoholic beverages that do not fit into one of the above categories, like $1 off, and do not cause the alcoholic beverages to be sold below cost are allowed at any time, including after 10 p.m.

Q11: Who should I contact if I have questions regarding my taxes or bond?

A: Contact the Tennessee Department of Revenue for questions about taxes and bonds. It is the responsibility of the licensee to ensure taxes and bonds are current in order to timely receive or renew a TABC license. You may contact the Department of Revenue at (615) 253-0680 or (844) 430-7678.

Q1: Is my winery required to post a pregnancy warning?

A: Yes. If a licensee sells alcoholic beverages, then the pregnancy warning sign must be posted in a prominent place, easily seen by customers. Failure to post this sign could lead to a warning from TABC staff. After the warning, the establishment can be assessed a twenty-five dollar ($25) fine per day. The required sign may be obtained from a TABC office.

Q2: What else should be posted in my winery?

A: A winery must also post its TABC license, health inspection report, and certificate of occupancy issued by the local jurisdiction.

Q3: How long must a winery maintain records?

A: Wineries must maintain records for three (3) years. The records must be made available for inspection to the TABC and the Tennessee Department of Revenue. Failure to do so could lead to revocation of the license. For purposes of this requirement, records in electronic format are acceptable if they are readily available and easily accessible.

Q4: May tastings occur at a winery and is consumption on the premises allowed generally?

A: Yes. A winery may conduct tastings for free or for a cost on the premises of the winery. Samples may not exceed two (2) ounces per variety for one (1) person on the same day. A winery may also sell glasses of wine made at the winery for consumption on the premises.

Q5: Do employees of a winery need to possess an ABC server permit in order to conduct tastings or to serve wine for consumption on the premises?

A: No. Employees of a winery do not need a server permit for either activity.

Q6: Does an employee of a winery or a manager of a winery need a manager's permit?

A: No.

Q7: What items may be sold at a winery?

A: A winery may sell its own wine in sealed bottles for consumption off the premises. A winery may also sell its own wine for consumption on the premises, and may sell, distribute, serve for the purposes of samples or tastings wine made at another domestic winery. Finally, a winery is authorized to sell items “related to or incidental to the use, consumption, dispensing, or storage of wine on the licensed premises.” A non-exclusive and illustrative list of such related items may be located at Tennessee Code Annotated section 57-3-204(h)(1).

Q8: What items may not be sold at a winery?

A: A winery is prohibited from selling distilled spirits, or beer. A winery is also prohibited from selling more than five (5) cases or sixty (60) liters of bottled wine to any single retail customer in one (1) day.

Q9: May a winery operate a restaurant within their winery?

A: Yes, a winery may operate a restaurant within their winery or otherwise serve food for on-premise consumption that compliments the serving, sampling, or consumption of wine. Such food may include prepared food or unprepared snack food. If the winery is only serving the winery’s own wine at such restaurant, then the winery does not need any other TABC license.

However, if the winery wishes to also sell or serve other alcoholic beverages, such as spirits or high gravity beer, then the winery must obtain a separate and distinct restaurant license. Any winery that applies for a restaurant license must meet all eligibility requirements for such a license.

Q10: Where must sales, tastings, or the consumption of wine on the premises occur?

A: The sale or consumption of wine generally must occur on the “premises” of the winery, which means “all contiguous property owned or leased by the winery.” Contiguous property where such sales and consumption may occur includes contiguous fields outside of the winery building, provided such field or other outside area is owned or leased by the winery.

Q11. Where can a winery serve tastings off of its licensed premises?

A: A winery may serve tastings at any retail package store performing tastings, or at any licensed special occasion event (e.g. a charitable event or winery festival licensed as a special occasion event). These are the only instances where the winery may serve tastings off of its licensed premises.

Q12: What are the authorized hours of sale for my winery?

A: A winery may not be open between the hours of 12:00 midnight and 8:00 a.m. on any day of the week.

Q13: Can a winery be open for business on a Sunday?

A: Yes, a winery may be open on Sunday.

Q14: May a winery ship its wine to residents of Tennessee?

A: Yes, if the winery applies for and obtains a license.

Q15. May a winery self-distribute its wine?

A: Yes, if it applies for and obtains a self-distribution permit. A winery needs to satisfy the requirements for such a permit.

Q16: Where may a winery self-distribute if properly permitted?

A: A winery may self distribute only within 100 miles of the winery and only to licensed on-premise establishments.

Q1: What organizations may apply for a special occasion license?

A: A special occasion license may be issued to a bona fide charitable, nonprofit or political organization. When applying for a special occasion license, a qualified entity must provide proof of their status as a charitable, nonprofit, or political organization.

This will typically include documentation demonstrating your designation as a nonprofit organization from the Internal Revenue Service is sufficient for your application.  

You must also provide a secretary of state control number showing your organization’s registration as a non-profit organization from the Secretary of State’s office. 

You may apply for a special occasion license through RLPS.

Q2: What does a special occasion license allow my qualified organization to do?

A: A special occasion license allows a qualified entity to sell alcoholic beverages for on-premises consumption (Liquor-by-the-Drink), or sell sealed containers of alcoholic beverages for off-premises consumption.

Q3: Are the individuals who serve alcohol at a licensed special occasion event required to obtain a server permit from the TABC?

A: No. TABC server permits are not required for individuals who serve alcoholic beverages at a licensed special occasion event.

However, it is the responsibility of the licensed organization and those who serve to ensure alcohol is not provided to individuals under the age of twenty-one or individuals who are visibly intoxicated.

Q4: How many special occasion licenses may my organization obtain?

A: A qualified organization may receive up to sixteen (16) special occasion licenses per calendar year. 

However, a trade association representing at least 3 Tennessee licensed distilleries or non-manufacturer non-resident sellers may receive up to fifteen (15) special occasion licenses per calendar year for distillery festivals.

Q5: How long is my special occasion license valid?

A: Special occasion licenses are only valid for a period of up to twenty-four (24) continuous hours. However, all laws and rules related to hours of sale must be followed. If your event will last for more than twenty-four
(24) hours, your organization must apply for an additional license from the TABC.  For example, if the event takes place between 12:00 pm Saturday and 12:00 pm Sunday, only one license is required.  

However, a trade association representing at least 3 Tennessee licensed distilleries or non-manufacturer non-resident sellers may obtain a special occasion license for a distillery festival that may last up to 3 days.

Q6. Can I receive donated alcohol for my licensed special occasion event? Who may donate the alcohol?

A: Yes. Entities who receive a special occasion license may receive donated alcohol from TABC licensed manufacturers, wholesalers, nonresident sellers, retail package stores, retail food stores, and liquor by
the drink establishments. Donated alcohol may only be used at the licensed special occasion event.

Q7: Who may receive the donated alcohol for my licensed special occasion event?

A:  Any representative of a qualified organization may receive donated alcoholic beverages for a licensed
special occasion licensed event provided that the donated alcoholic beverages are only used for the licensed special occasion event. 

Q8: How far in advance of the event must the application be submitted?

A: The application must be submitted to the Nashville TABC office at least two (2) weeks prior to
the event.

Q9: What is a letter of permission?

A: A letter of permission is a communication from the owner of the property at which the event
is to be held granting permission for the organization to sell or serve alcoholic beverages on the premises.

Q10: I am in individual or business owner and would like to host an event to raise money for a charity. May I obtain a special occasion license for my event?

A: No. A special occasion license may only be granted to a qualified nonprofit organization to produce its own fundraising event. It may not be issued to another entity to produce an event even if that other entity donates proceeds to another organization. Some events may qualify for other licenses however such as a festival license or an event at which alcohol is served by a licensed caterer.

Q1: What is the purpose of a collector license?

A:  The collector license, pursuant to T.C.A. § 57-3-209, authorizes an individual who displays a collection of commemorative bottles containing alcoholic beverages in a location available to the public, either by appointment or on a regular schedule, to sell such collectible alcoholic beverages for the purpose of collection, without the intent that the collectible alcoholic beverage be consumed.  Such sale must be in done in a face to face transaction.  Only alcoholic beverages that meet the definition of a “collectible alcoholic beverage” may be sold by a licensed collector.

Q2: What is a collectible alcoholic beverage?

A: A “collectible alcoholic beverage” is a commemorative or unique bottle containing an alcoholic beverage that is not generally available at a retail package store and is not intended for consumption.  The bottle or container itself, or a sticker, label or similar item placed on the container by the manufacturer must be commemorative or unique, not the alcoholic beverages within the container.  There is a presumption that a bottle sold for less than 300% of the same type of alcoholic beverage's typical retail price is not a collectible alcoholic beverage. However, an alcoholic beverage that sells for more than 300% of the typical retail price is not presumed to be a collectible alcoholic beverage, and regardless of its price, the bottle must meet the above definition to be a collectible alcoholic beverage.  Below are some examples of what would not be considered a collectible alcoholic beverage. 

Rare alcoholic beverage – The fact that an alcoholic beverage is rare, unique or collectible is not relevant in considering if a product is a collectible alcoholic beverage, as it is the container that must be commemorative or unique.

20-year-old whiskey – The age of an alcoholic beverage or the year
in which it was made would not make an alcoholic beverage a collectible
alcoholic beverage. 

Batch Number – A batch number alone does not make a bottle a
collectible alcoholic beverage. If a product always includes a batch number,
then while each bottle or specific groups of bottles would have a different
batch number, the presence of varying batch number itself alone would not be a
unique characteristic making the bottle a collectible alcoholic beverage. 

Q3: Can a collector license holder advertise or sell collectible alcoholic beverages online?

A: Collectible alcoholic beverages may be advertised online, but sales must be in person. All purchases shall occur in face to face transactions between the licensed collector and the purchaser at the premises specified on the collector license.

Q4: Can a collector license holder auction alcoholic beverages?

A: Pursuant to Attorney General Opinion 09-177, a licensed collector who is also licensed with the state as an auctioneer may auction collectible alcoholic beverages provided that that auction is “a live auction with the auctioneer and all bidders present in person and within physical sight and sound of each other while the auction is conducted.”

Q5: Can a collector license be held by a business entity or partnership?

A: No, only a person may hold a collector license. Only that single individual may have a direct or indirect interest in the licensed business.

Q6: How much are the fees for a collector license?

A: There is a one-time, non-refundable $300 application fee for new licenses. A $1,000 license fee is due when the license is approved and at each annual renewal.

Q7: What tax is the collector license holder responsible for submitting to the Department of Revenue related to the sale of the collectible alcoholic beverages?

A: The collector license holder is responsible for submitting all sales tax from the sale of such goods, and unless the collector can demonstrate that the collectible alcoholic beverages were purchased from a Tennessee licensed retail package store, then the collector is also responsible for paying the gallonage tax related to such collectible alcoholic beverage. Please contact the Tennessee Department of Revenue for any questions regarding the payment of such tax.

Q1: What is a server permit and who is required to obtain a server permit?

A:  A TABC-issued server permit authorizes an individual to serve alcoholic beverages or beer at an establishment that holds an on-premise consumption license.  Anyone who wishes to serve or sell alcoholic beverages or beer for on-premise consumption at a TABC-licensed establishment must obtain a server permit.  Once issued, a server permit is valid for five (5) years.  Server permits are not transferable to other individuals. 

Q2: How old do you have to be to obtain a server permit?

A:  To obtain a server permit, you must be at least eighteen (18) years old.  If the establishment permits smoking on the premises, then the server must be at least twenty-one (21) years old.

Q3: When must a server obtain a permit from the TABC?

A:  A server has sixty-one (61) days from the time he or she begins serving at any establishment to obtain a server permit from the TABC. A server permit expires after five (5) years, at which time a server must apply for a new permit. An individual who held a server permit in the past is not eligible for the sixty-one (61) day grace period if he or she has allowed the server permit to expire.

Q4: Is a manager of an on-premise consumption licensee required to have a valid server permit?

A:  Yes.  Each on-premise manager, assistant manager, and/or any individual working in such capacity and having duties which directly or indirectly impact on the selling and dispensing of alcoholic beverages must have a valid server permit.

Q5: What is required to obtain a new server permit?

A:  In order to obtain a server permit from the TABC, an individual must do the following:

1.       Create and complete a server permit application online:

a.       Create an RLPS account;

b.       Create a new server permit application;

c.        Upload the required documentation; and

d.       Pay the $20.00 non-refundable application fee.

2.       Complete a program of alcohol awareness training for persons involved in the direct service of alcohol, wine or beer by an entity certified by the commission to have an adequate training curriculum for alcohol awareness.  The training program must be at least three and one half (3.5) hours long.  The certificate indicating successful completion of the program is not a TABC server permit.

3.       For additional information regarding applying for a server permit, please consult the TABC’s video tutorials available at https://www.tn.gov/content/tn/abc/rlps/rlps-tutorials.html .

Q6: Where can I take the required server permit training and what is the cost?

A:  A current list of approved training programs, including online training programs, and server training trainers can be found at https://www.tn.gov/abc/permitting/server.html.  Someone wishing to attend server permit training should seek additional information about the class times and costs from the specific training program or trainer.  The TABC does not set the cost for training programs, and trainers are not employed by the TABC. 

Q7: Do I qualify for a server permit if I have a criminal history?

A: The TABC reviews applications for licenses and permits to determine whether the applicant has a criminal history that directly relates to the occupations under the regulation of the Commission. The TABC will not consider any convictions that have been expunged from an applicant’s criminal history. In order to facilitate the review of your application, please attach to your application judgment forms for all convictions.  The judgment forms should indicate the court where the conviction occurred, the conviction date, the conviction offense and statute violated, and the resulting sentence. You may obtain copies of the judgment forms from the courts where the convictions occurred. For further information regarding how the TABC reviews criminal convictions, please follow the below link to a Director’s Memo on this topic:

https://www.tn.gov/abc/public-information-and-forms/director-s-memos.html

Q8: Can a server permit be suspended or revoked?

A:  Yes.  A server permit may be suspended or revoked by the Commission for any violation of Title 57 of Tennessee Code Annotated or the rules and regulations of the TABC.  In lieu of suspension or revocation, the Commission may require the server to retake and successfully complete a program of alcohol awareness training conducted by an entity certified by the Commission. 

Q9: Can I hold a server permit card to sell alcohol for on-premise consumption, and also hold a manager’s permit card for off-premise consumption?

A:  Yes.  An individual who holds a server permit may also seek to obtain a manager’s permit from the TABC. 

Q10: Will the TABC mail my server permit?

A:  No.   Applicants are responsible for printing out their own server permits from the associated RLPS account once the permit has been approved. 

Q11: How do I print out the server permit from my RLPS account?

A:  Please see the TABC’s RLPS tutorial for instructions on how to print a server permit. 

Q12: If I submit an application, will I necessarily receive a permit?

A:  No.  Submitting the application does not guarantee approval of the application.  The TABC reviews the application information to determine if an applicant qualifies for the permit.  Permits will be issued to those who qualify for the permit and will be denied those who do not qualify. 

Q13: Am I required to have a copy of my server permit while I am working?

A:  Yes.  Servers are required to have a copy of their server permit on their person while they are working.  For purposes of this requirement, server permits in electronic format are acceptable if they are readily available and easily accessible. 

Q1: What businesses may apply for a festival license?

A: A festival license may be issued to a for-profit business or a third party with whom such business contracts to operate a festival in which alcoholic beverages or beer will be sold, given away, or otherwise dispensed.

You may apply for a festival license by completing the application found here:

https://www.tn.gov/content/dam/tn/abc-documents/abc-documents/Festival%20License%20Application.pdf.

Q2: Are individuals who serve alcohol at a licensed festival required to complete alcoholic beverage service training or hold a TABC server permit?

A: Yes. Individuals selling, serving, or dispensing alcoholic beverages or beer must be adequately trained and supervised in the service of alcoholic beverages and beer and on the applicable laws regarding such service. All servers must have on their person either proof of completion of a TABC approved training course or a valid TABC server permit card.

Q3: Where may a festival be held?

A: A festival may be held in any city or county which has approved the festival.  This approval must be in writing and provided with the application for a festival license.

Q4: Does an applicant need to obtain permission from the owner of the property where the festival is to be held?

A: Yes. A letter of permission from the owner of the property at which the event is to be held granting permission to sell or serve alcoholic beverages on the premises must be submitted to the TABC as part of the application.

Q5: If my non-profit organization wants to hold a festival with alcoholic beverages, then do we need a festival license?

A:  No. A festival license is only for for-profit businesses. Non-profit organizations can sell or provide alcoholic beverages at a charity fundraiser or similar event by obtaining a special occasion license.

Q6: I want to sell alcoholic beverages at multiple different festivals and events that others are hosting. Should I get a festival license for this?

A:  No. The most appropriate license type for selling alcoholic beverages at multiple events is likely a catering license. However, a catering license has its own separate requirements, including exclusive use of a permanent catering hall with a commercial kitchen from which your business would operate.

Q7: If an applicant intends to serve beer, is a separate beer permit needed?

A: Yes. If an applicant plans to serve or dispense beer, a beer permit must be obtained from the appropriate local jurisdiction.

Q8: How long is my festival license valid?

A: A festival license is valid for a period of up to seven (7) consecutive days in length. In addition to the $300 application fee, the license fee is $1000 per day.

Q9: What times may I serve alcoholic beverages at a licensed festival?

A: Alcoholic beverages and beer may only be sold, dispensed, or consumed within hours sufficient to ensure adequate public health, safety, and welfare as determined by the commission and/or local beer board, as applicable.

Q10: From whom can the festival operator obtain alcoholic beverages?

A: A festival operator must obtain the alcoholic beverages and beer to be sold or dispensed only from a licensed Tennessee wholesaler. A festival operator may not receive, store, sell, or otherwise dispense donated alcoholic beverages or beer. A festival operator may not purchase or obtain alcoholic beverages or beer from a retail package store or any other licensee besides a wholesaler.

Q11: How far in advance of the festival must the application be submitted?

A: It is suggested that the application for the festival be submitted at least three (3) weeks in advance of the festival to ensure adequate time for staff to review the application and determine its issuance.

Q12: Does an applicant need to submit plans showing adequate security?

A: Yes. A festival license applicant must submit plans and assurances demonstrating that a festival will have adequate security proportionate to the number of estimated festival attendees and space of the premises.

An applicant must also submit a diagram showing all of the points of sale from which alcoholic beverages and beer will be sold or dispensed.

Q13: Does an applicant need to submit adequate assurances of compliance with trade practice and tied house statutes and rules?

A: Yes. A festival license applicant must provide the TABC with adequate assurances that the applicant will adhere to and comply with state and federal trade practice and tied house laws governing the exchange of things of value between industry members and retailers.

Q14: May sealed bottles of alcoholic beverages be returned if they were not opened or consumed at the festival?

A: Yes. A wholesaler may buy back any unopened and resalable bottles of alcoholic beverages from the festival operator at the end of the festival. A wholesaler must keep on file all records and documentation of such transactions.