Loudon County Beer Permit Requirements

1. Beer defined. The term beer as used in this chapter shall mean and include all beers, ales, and other malt liquors having an alcoholic content of not more than five percent (5%) by weight.

2. Beer Permits. Permit Fees. It is unlawful to operate any business engaged in the sale, distribution, manufacture or storage of beer without first obtaining a permit from the county in which the business is located. However, no city or county permit is required for a wholesaler unless the wholesaler operates a warehouse in the county. T.C.A. 57-5-103.

(a) Application Fee. Each applicant is required to pay an application fee of $250 to the county in which the business is located prior to consideration of an application to sell beer. No portion of this fee can be refunded to the applicant regardless of whether the application is approved or denied. T.C.A. 57-5-104(a).

3. Privilege Tax. A privilege tax is imposed on the business of selling, distributing, storing or manufacturing beer in Tennessee in the amount of $100 per year, due each January 1. At the time a new permit is issued, the permit holder is required to pay this tax on a prorated basis for each month or portion of a month remaining until the next payment date. T.C.A. 57-5-104(b)(5).

4. On-Premises or Off-Premises Consumption. A business may sell beer for both on-premises and off-premises consumption under the same permit. T.C.A. 57-5-103(a)(5). However, a permit is not valid for on-premises consumption unless the application so states. T.C.A. 57-5-105(a)(5). If a permit holder for either off-premises or on-premises consumption wishes to change the method of sale, the permit holder must apply for a new permit. T.C.A. 57-5-105(c)(8).

5. Classes of consumption permits. Permits issued by the beer board shall consist of two classes T.C.A. 57-5-105(1):

(1) On Premises Permit. An On Premises Permit shall be issued for the consumption of beer only on the premises.

(2) Class 2 Off Premises Permit. An off premises permit shall be issued for the sale of beer for consumption off the premises only.

6. Interference with public health, safety, and morals prohibited. No permit authorizing the sale of beer will be issued when such business would cause congestion of traffic or would interfere with schools, churches, day cares, cemeteries, or other places of public gathering, or would otherwise interfere with the public health, safety, and morals. In no event will a permit be issued authorizing the manufacture or storage of beer, or the sale of beer within two thousand (2,000) feet of any hospital, school, church, day care, cemeteries, or other places of public gathering. The distances shall be measured in a straight line from the nearest point of the building from which the beer will be manufactured, stored or sold to the nearest point of the hospital, school, church, day care, cemetery, or other place of public gathering. T.C.A. 57-5-105(1).

No permit authorizing the sell of beer will be issued when such business would be within three hundred (300) feet of a residential dwelling measured in a straight line from the nearest point of each building providing the owner of the residential dwelling appears before the county beer board in person and objects to the issuance of the permit..T.C.A. 57-5-105(i)

(a) The applicant shall provide to the beer board a certified survey showing that their building does not violate any of the required minimum distances.

7. Issuance of permits to persons convicted of certain crimes prohibited. No beer permit shall be issued to any person who has been convicted for the possession, sale, manufacture, or transportation of intoxicating liquor, or any crime involving moral turpitude within the past ten (10) years. No person, firm, corporation, joint-stock company, syndicate, or association having at least a five percent (5%) ownership interest in the applicant shall have been convicted of any violation of the laws against possession, sale, manufacture, or transportation of beer or other alcoholic beverages or any crime involving moral turpitude within the past ten (10) years. T.C.A. 57-5-105(b)(3).

8. Prohibited conduct or activities by beer permit holders. It shall be unlawful for any beer permit holder to:

(a) Employ any person convicted for the possession, sale, manufacture, or transportation of intoxicating liquor, or any crime involving moral turpitude within the past ten (10) years.

(b) Employ any minor under 18 years of age in the sale, storage, distribution or manufacture beer.

(c) Make or allow any sale of beer between the hours of three o'clock a.m. (3:00 a.m.) and eight o'clock a.m. (8:00 a.m.) on weekdays, or between the hours of three o'clock a.m. (3:00 a.m.) and twelve o'clock (12:00) noon on Sundays.. T.C.A. 57-5-301.

          (d) Make or allow any sale of beer to a person under twenty-one (21) years of age.

(e) Allow any person under twenty-one (21) years of age to loiter in or about his place of business.

(f) Make or allow any sale of beer to any intoxicated person or to any feeble-minded, insane, or otherwise mentally incapacitated person.

           (g) Allow drunk persons to loiter about his premises.

(h) Allow the consumption on his premises of any alcoholic beverages with an alcoholic content of more than five percent (5%) by weight if the permit is for off premise only.

           (i) Allow pool or billiard playing in the same room where beer is sold and/or consumed.

           (j) Fail to provide and maintain separate sanitary toilet facilities for men and women. T.C.A. 57-5-301.

9. Revocation of beer permits. The beer board shall have the power to revoke any beer permit issued under the provisions of this chapter when the holder thereof is guilty of making a false statement or misrepresentation in his application or of violating any of the provisions of this chapter. However, no beer permit shall be revoked until a public hearing is held by the board after reasonable notice to all the known parties in interest. Revocation proceedings may be initiated by the police chief or by any member of the beer board. T.C.A. 57-5-108.

10. Civil penalty in lieu of suspension. The beer board may, at the time it imposes a revocation or suspension, offer a permit holder the alternative of paying a civil penalty not to exceed $1,500 for each offense of making or permitting to be made any sales to minors or, a civil penalty not to exceed $1,000 for any other offense. If a civil penalty is offered as alternative to revocation or suspension, the holder shall have seven (7) days within which to pay the civil penalty before the revocation or suspension shall be imposed. If the civil penalty is paid within that time, the revocation or suspension shall be deemed withdrawn.

11. Violations. Except as provided in 102, any violation of this chapter shall constitute a civil offense and shall, upon conviction, be punishable by a penalty under the general penalty clause of the Tennessee code. Each day a violation shall be allowed to continue shall constitute a separate offense.

12. Public Parks. The Loudon County Commission by resolution prohibits the consumption of any alcoholic beverage or beer in public parks or recreation areas which are not within the corporate boundaries of a municipality. Such areas shall be prominently posted by the county in order to give the public reasonable notice. A violation of this resolution is a misdemeanor. T.C.A. 5-5-127.

13. Documentation. All beer permit holders are required to provide the county with documentation that they are duly registered with the Commissioner of Revenue for sales tax purposes. A new permit holder must provide this documentation within ten (10) days following approval of the permit. The required documentation is an actual copy of the registration certificate indicating that the purchase of beer is for resale by the beer permit holder. Permit holders are required to maintain a copy of a valid resale certificate on file with the county. T.C.A. 57-5-103(1).

(a) All permit holders must display a copy of their beer permit prominently in their business.

14. Outdoor Signs. No outdoor sign, advertisement or display that advertises beer may be erected or maintained on the property on which a retail beer establishment is located other than one sign, advertisement or display which makes reference to the fact that the establishment sells beer but does not use brand names, pictures, numbers, prices or diagrams relating to beer.  T.C.A. 57-5-304.

          15. Laws of the State Adopted. All of the laws of the state of Tennessee, contained in Title 57, pertaining
           to the sale, storage, and manufacturing of alcoholic beverages having an alcoholic content of not more than
           5% by weight are adopted.

16. Application. Any material misrepresentation on the application shall be cause for denial of permit or revocation and shall forfeit applicant�s ability to receive a permit for a period of ten (10) years. T.C.A. 57-5-105(D).

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