(a) In order to accurately determine the tax to be paid, no wholesaler shall make any reduction or adjustment for loss due to shortages or damaged or broken containers, except for the actual loss from the time the beer leaves the brewery until it is delivered to the retailer.
Terms Used In Tennessee Code 57-6-109
Municipality: means an incorporated town or city having a population of: (i) Seven hundred (700) or more, according to the 2010 federal census or a subsequent federal census. See Tennessee Code 57-3-101
Representative: when applied to those who represent a decedent, includes executors and administrators, unless the context implies heirs and distributees. See Tennessee Code 1-3-105
Retailer: means any person who sells at retail any beverage for the sale of which a license is required under this chapter. See Tennessee Code 57-3-101
Wholesaler: means any person who sells at wholesale any beverage for the sale of which a license is required under this chapter. See Tennessee Code 57-3-101
(1) Such reductions or adjustments shall not exceed one-half of one percent (0.5%) of the total monthly purchases of each wholesaler, except in cases of fire, storms, acts of God or unavoidable accidents.(2) Any claims in excess of one-half of one percent (0.5%) must be substantiated by sworn statements of at least two (2) witnesses or persons otherwise familiar with the facts concerning such loss.(3) Any and all claims for such credits may be disapproved by the department of revenue.(b) All beer shall be inspected and accepted by the retailer or the retailer’s representative at the time of delivery and no adjustment or refund for damage, breakage or shortage shall be made by any wholesaler subsequent to the time of delivery to the retailer. A wholesaler may determine that beer sold to a retailer does not conform to quality control standards. Upon making that determination, the wholesaler may provide the retailer with replacement beer in exchange for the beer that no longer conforms to quality control standards, if the tax paid on the total amount of replacement beer is equal to the tax credit received on the beer being returned by the retailer.(c) A wholesaler may purchase full case lots of beer previously sold to a retailer by the wholesaler at the price at which the beer was sold to the retailer:
(1) Upon determination by a county or municipality that:
(A) A retailer has surrendered or abandoned its permit to sell beer;(B) A retailer’s permit to sell beer has been revoked; or(C) A retailer’s permit to sell beer has been suspended for more than thirty (30) days; or(2) When a retailer has in good faith discontinued business for more than thirty (30) days.
