Memphis Excise Rules for Alcohol and Tobacco

Taxation and Finance Tennessee 4 Minutes Read · published February 08, 2026 Flag of Tennessee

In Memphis, Tennessee, sellers of alcohol and tobacco must comply with state excise tax law and local business licensing requirements. This guide explains how excise taxes are imposed, which authorities enforce collection and compliance, and practical steps for retailers and venues in Memphis to register, report, and remit taxes. It summarizes enforcement paths, typical violations, and where to find official forms and contacts for questions or complaints.

Scope and How These Taxes Apply

Excise taxes on alcoholic beverages and tobacco products are administered at the state level in Tennessee; local Memphis obligations generally focus on licensing, business tax collection duties, and local compliance inspections. Retailers must ensure they hold required city business licenses and meet state filing and remittance obligations. Specific state rate schedules and filing rules are published by the Tennessee Department of Revenue for alcoholic beverages and for cigarettes and other tobacco products [1][2].

Check both your city business license and state tax registration before selling alcohol or tobacco.

Registration, Collection and Reporting

  • Register for a Tennessee tax account and obtain any required city business license before opening or expanding sales.
  • Collect and track excise taxes or included tax components at point of sale as required by state rules.
  • File returns and pay by the deadlines set by the Tennessee Department of Revenue and the City of Memphis where applicable.

Penalties & Enforcement

Enforcement responsibilities are shared: the Tennessee Department of Revenue enforces state excise tax assessment and collection, and the City of Memphis enforces local licensing and business compliance. Where the state has specific penalties and interest for late or unpaid tax, those are set on the Tennessee Department of Revenue pages; local monetary fines or administrative penalties for violations of city licensing or ordinances may be set in the City of Memphis code or licensing rules. Where amounts or schedules are not published on the cited page, the text below notes that fact and points to the official source for current figures.

  • Monetary penalties: not specified on the cited Memphis pages; state penalty and interest provisions appear on Tennessee Department of Revenue pages [1].
  • Escalation: first, repeat, and continuing offence escalation details are not specified on the cited Memphis pages; consult state rules for tax-specific escalation and the City of Memphis code for local licensing sanctions.
  • Non-monetary sanctions: the city may impose license suspensions, revocations, or administrative orders; the state may pursue liens, seizures, or collections—specific remedies are not fully published on the city pages.
  • Enforcer and complaint pathways: Tennessee Department of Revenue enforces tax collection for excise taxes; City of Memphis Business Licensing or Revenue divisions handle local licensing and compliance. For state tax enforcement and filings see the Tennessee Department of Revenue guidance [1][2].
  • Appeals and review: appeal routes for state tax assessments and administrative penalties are governed by Tennessee law and department procedures; time limits and appeal windows are specified on the Tennessee Department of Revenue pages or the assessment notice (if issued).

Applications & Forms

State tax returns, license applications, and related forms are published by the Tennessee Department of Revenue; city business license application forms and fee schedules are published by the City of Memphis. If a specific form number or local fee schedule is required, consult the Tennessee Department of Revenue pages for alcohol and tobacco taxes and the City of Memphis licensing pages for the current local application materials. The city pages do not consolidate every state form number; where a form number is not listed on the cited Memphis page it is noted as not specified on the cited page.

Common Violations

  • Selling without a current city business license or permit.
  • Failing to register with the Tennessee Department of Revenue or to file required excise returns.
  • Failing to remit excise taxes collected or misreporting taxable quantities.
Keep complete sales records for the statutory period in case of audit.

Action Steps

  • Confirm city business license requirements and apply with City of Memphis Business Licensing before selling.
  • Register for a Tennessee Department of Revenue account and enroll in applicable excise tax filing.
  • Set accounting processes to segregate or correctly track excise tax liabilities and remit by state deadlines.
  • If inspected or assessed, follow the notice instructions for payment or appeal within the time limits stated on the official notice or department guidance.

FAQ

Do Memphis city authorities set excise tax rates for alcohol and tobacco?
Generally no; excise tax rates for alcohol and tobacco are set and administered by the State of Tennessee. City obligations focus on licensing and local compliance. [1][2]
Where do I file excise tax returns?
File state excise returns with the Tennessee Department of Revenue. City business license renewals and local filings are submitted to City of Memphis business licensing or revenue offices; check the city website for local procedures.
What if I disagree with a tax assessment?
Follow the appeal instructions on the assessment or notice; Tennessee Department of Revenue outlines appeal and protest procedures on its pages. City-level license decisions have separate local appeal or administrative review paths as described by the city.

How-To

  1. Confirm that your business location in Memphis has the correct city business license or permit.
  2. Register with the Tennessee Department of Revenue for excise taxation accounts for alcohol and/or tobacco.
  3. Begin regular reporting: collect data, file returns, and remit taxes by the state deadlines.
  4. Maintain records and respond promptly to any inspection, assessment, or notice; file appeals within the time limits stated on notices.

Key Takeaways

  • Alcohol and tobacco excise taxes are administered by Tennessee; Memphis enforces local licensing.
  • Register with both city and state authorities before selling.
  • Penalties and interest for state taxes are detailed by the Tennessee Department of Revenue; local fines may be specified in city materials or ordinances.

Help and Support / Resources

  1. [1] Tennessee Department of Revenue - Alcoholic Beverage Tax
  2. [2] Tennessee Department of Revenue - Cigarette and Tobacco Taxes

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