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Opinion The BruceV Blog

Tennessee’s New Beer Tax Laws Take Effect July 1

Justin Fox Burks

Memphis’ High Cotton Brewery

I’ve never been a fan of state senator Brian Kelsey, but credit where credit is due. The gentleman from Germantown has done Tennessee beer-drinkers (and beer-makers) a solid by co-sponsoring and (getting passed) new tax laws which will considerably lessen their tax burden. (Read Hannah Sayle’s recent excellent Flyer cover story on the craft brewing movement for more background.)

Anyway, in short, due to the fact that the state’s previous beer tax was based on the price of beer, rather than volume, as it is in most other states, Tennessee had the highest beer tax in the country, and …

Well, it’s sort of complicated, and it’s Friday, and I want a beer, so I’m just going to publish the state’s press release. Cheers!

(NASHVILLE, TN), June 28, 2013 — On Monday July 1, beer tax reform legislation that was overwhelmingly adopted by the General Assembly in April will take effect as a vast array of new laws are enacted. Upon enactment, the Beer Tax Reform Act of 2013 will convert Tennessee’s outdated price-based tax to a volume-based tax, bringing the state in line with neighboring states and modernizing its tax structure. The bill was sponsored by State Representative Cameron Sexton (R-Crossville) and State Senator Brian Kelsey (R-Germantown).

“This new law promotes competitiveness and economic opportunity, as well as choice for consumers,” said Senator Kelsey. “Tennessee beer sales have declined 5 percent over the past decade, while the revenues from the wholesale tax climbed to over 30 percent. This demonstrates the punitive nature of this antiquated tax which just doesn’t make sense.”

Under the current law, which was created in the 1950s, Tennessee leads all other states’ beer tax rate by a 12% margin at $37 per barrel. This is more than 4 times the $8.69 rate in Virginia. Other states in the region include $19.13 in North Carolina, $23.96 in Kentucky, $7.51 in Arkansas and $13.23 in Mississippi, $32.65 in Alabama, $1.86 in Missouri and $30.73 in Georgia.

According to Kelsey, the new tax structure will still preserve the current levels of funding that the state’s local governments receive from the tax. The legislation was supported by a coalition consisting of a wide variety of businesses and consumers.

Some facts about Tennessee’s old beer tax system:

• Under the old tax, Tennessee had the highest beer tax in the country, and because it was largely based on price, not volume, it would have continued to keep growing and growing if left unchecked.

• Tennessee’s old beer tax rate used the barrel as its standard rate of measure. A barrel is 31 gallons of beer. That beer can be sold by the can, bottle, case or keg, but as far as the old tax was concerned, the rate was based on the barrel.

• For the past decade, beer sales have declined by five percent in Tennessee, but the local wholesale tax revenues have climbed rapidly, up more than 30 percent.

• Tennessee became the highest beer tax rate in the country in 2008, overtaking Alaska.

• Higher price-point beers were taxed higher, which unfairly penalized Tennessee’s young craft-brewing industry.

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News

The Color Purple at POTS

Chris Davis says get your tickets now, because Playhouse on the Square’s production of The Color Purple will likely sell out fast.

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Sing All Kinds We Recommend

Black Lodge Video and Craig Brewer Throw a Party

Craig Brewer

  • Craig Brewer

With digital on demand changing the way people consume cinema Craig Brewer wants to raise Black Lodge Videos profile, and remind people that great video shops, like great record stores, aren’t just a retail opportunity, but a resource.

You can read all about tonight’s party here. But, even if you miss this shindig celebrating the launch of Indie Origins, a fun documentary about the Memphis film scene in the 1990’s (featuring a cameo by me and some ridiculous facial hair), the DVD will be distributed free at Black Lodge with additional rentals.

Some sneak peaks at Indie Origins.

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Politics Politics Beat Blog

The Memphis City Budget Got Done. Is Everybody Happy?… Bueller?

Mayor Wharton, Council Chairman Ford at budget meeting

  • JB
  • Mayor Wharton, Council Chairman Ford at budget meeting

After serious wrangling that lasted a full 9 hours, beginning in mid-afternoon and ending well after midnight on Tuesday of this week, the Memphis City Council bit the bullet, sort of, and, on third and final reading, raised the city property tax rate from $3.11 to $3.40 — the latter figure being only 4 cents higher than the city’s newly certified tax rate of $3.36. The $3.36 figure — a purely technical one calculated to ensure the same amount of revenue as the year before — was made necessary by a serious decline in local property-value assessment.

The Council had earlier passed an operating budget for fiscal 2013-14 of $622 million that included the restoration of a 4.6 percent employee tax cut dating from 2011. In a previous session last week, the Council, mindful of an implied threat by state Comptroller Justin Wilson to intervene in the interests of a balanced budget, had temporized on the pay-cut restoration. The tax-rate increase passed Tuesday night, coupled with 50 layoffs of yet-to-be-designated city employees (and 300 other jobs cuts via natural attrition), was an alternative route to a balanced budget.

The budget also allowed for retention of a weights and balances division, despite complaints from some members that no other city in Tennessee, Arkansas, or Mississippi maintained such a division, to perform oversight services normally the province of state government.

In early discussion on W & M Tuesday, Council members were throwing around the figure of $500,000 as the annual cost of maintainng the division, and that sum seemed large enough to justify excising the division from the budget on a preliminary vote.. Councilman Bill Boyd later corrected that to $190,000, however, a figure corresponding more or less to the salaries of the division’s four employees, and that amended information was the impetus for getting the division back in the budget on an excuse-me second vote.

Community centers, libraries, code enforcement, and the city’s MATA public-transportation system were also favored with modest increases.

Altogether not the austerity budget sought by some members, but not a spendthrift one, either. A genuine compromise.

But it took a heap of doing and involved some heated exchanges between members that took place somewhere between standard improv and Artaud’s Theater of Cruelty. ”

There was Councilman Shea Flinn, doggedly seeking to maintain what he saw as fiscal common sense and simultaneously attempting to prove that he was not only the Council’s cute Beatle but the witty one as well. “Bueller? Bueller?” he wondered aloud at one point, soliciting an alternate view for one of the matters under discussion.

An interesting irony there — in that Flinn’s reference was, of course, to “Ferris Bueller’s Day Off,” the ’80s cult classic starring a hookey-playing Matthew Broderick, a film well-enough known to net the Councilman the audience chuckles he was looking for, but the reality was that nobody, but nobody, was getting any time off Tuesday.

Flinn would put himself in the firing line when he ventured a sharp retort to colleague Harold Collins’ call for “creativity” in maintaining programs (e.g., weights and measures) that Flinn and others saw as both too costly and unnecessary. That was akin to a belief in “magic” or in the eternal life of “Tinker Belle,” Flinn said. in salvoes that followed from Collins and Janis Fullilove, Flinn was chastised for his criticism and abused as what Collins called “a theater major.”

And there was a lot of theater indeed to be seen on Tuesday. Fullilove, one of the holdouts against most of the serious reductions being discussed, objected sardonically at one point that she was being disregarded because “I danced on the pole.” That was a reference to an embarrassing incident on a river cruise for visiting national Black Caucus members in 2010.

Joe Brown, famous for his persistent rhetorical refrain of “in so many words or less,” selected one choice word to hurl at the administration of Mayor A C Wharton after city CAO George Little had promised in principle that new jobs would be found at some point for weights and measures employees if their division were discontinued.

“That’s a lie!” Brown charged.

And there was the incredulous response of Collins to Fullilove’s sweetly expressed inquiry — more or less on the order of ‘Beulah, can you peel me another grape?’ — as to whether another $2 million could be tacked on for summer youth jobs.

This was in the immediate wake of one of several hard-fought and barely won battles to limit employee layoffs — and Collins, after blinking an eye, said, “If we try to add that on, Councilman Fullilove, we’ll be here ’til 8 o’lcock tomorrow!”

There was more — enough so that an ambitious compiler could easily distill a Greatest Hits or blooper album from raw recordings of the evening.

A more sanguine view of the proceedings would suggest that it was a first-class example of democracy at work.

In the final analysis, the budget/tax rate outcome was a split-the-middle affair based essentially on rival budgets presented by Council chairman Ed Ford Jr. (with implicit blessings from the administration) and Collins, with input from conservatives like Jim Strickland and Kemp Conrad, moderates like Myron Lowery and Lee Harris, and hold-the-line-on-everything types like Fullilove, Brown, and Wanda Halbert.

Timely interventions to break deadlocks came as well from Bill Boyd, Bill Morrison, and the normally reserved but increasingly outspoken Reid Hedgepeth.

It took the whole village, and, to say the least, not everybody was satisfied, but it got done.

●One of the casualties of the budget season was the long-tenured system of automobile inspection for the City of Memphis. In a simple press release on Thursday Mayor Wharton announced that, as of 3 p.m. the next day, Friday, June 28, all of the city’s motor vehicle inspections stations would “permanently close” and that, beginning July 1, the Shelby County Clerk’s office would renew vehicle registrations “without the requirement of motor vehicle inspection.”

The bottom line was that the cash-strapped city decided to bail on automobile inspection for clear and obvious financial reasons. The Shelby County government, having its own fiscal problems and faced with obdurate suburban resistance to regular auto inspections, declined to take over — as it has in several other cases of the city’s discontinuing involvement with public enterprises (notably the health department). And last month, Governor Bill Haslam informed the city that— contrary to a previous understanding held by both local mayors, Wharton and county mayor Mark Luttrell — the state would not be able to pick up the slack, either.

From a P.R. point of view, the abolition of inspections made perfect sense. Though generally approved of by Memphis citizens as a public service and safety measure, the inspection program was experienced by many of them as a personal nuisance — particularly since their brethren in the outer county have labored under no such requirements. And it was costly, to the tune of some $2.7 million annually.

Left unresolved was the question of what to do about a finding by the Environmental Protection Administration that both Memphis and Shelby County at large have dangerous emission levels. The EPA had recently extended an 18-month window for “good faith” efforts by the local governments to correct the problem.

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News

New Look South Memphis Farmers Market

Susan Ellis has a story (and pics) of the new digs for the South Memphis Farmers Market.

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News

Grizzlies’ Night Moves

The Grizzlies made three late-night moves on draft day. Chris Herrington has the story.

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Beyond the Arc Sports

Griz Draft-Night Haul: Kosta Koufos, Jamaal Franklin, Janis Timma

Kosta Koufos

  • Kosta Koufos

A quick, late-night look at what seemed to be a nice first draft night for the Grizzlies’ new front office, with follow-up tomorrow:

Move 1: Traded Darrell Arthur and the #55 pick to Denver for center Kosta Koufos
I thought there was a chance that Arthur could move on draft night, but for a late-first-round pick. And expected him to move this off-season regardless, but to free up more payroll space under the tax line for other moves. Instead, it came in the form of a (basically) financially even player-for-player deal with only minor draft implications.

But this looks like a good move for the Grizzlies. They checked off their second or third biggest off-season need (a true back-up center to play behind Marc Gasol) and cleared up a crowded scene at power forward, solidifying Ed Davis as the back-up power forward and creating a potential opportunity to develop Jon Leuer as a fifth big. The team’s entire frontcourt rotation fits together better now.

Beyond that, they likely got the better — or at least most valuable — player in the deal: Koufos is a 24-year-old true center (7’0”, 265 pounds) who started 81 games for a playoff team in Denver last season. Koufos averaged 8 points and 7 rebounds a game on 58% shooting in 22 minutes a game in what was something of a breakout fifth season. He’s a much better rebounder than Arthur and doesn’t have as troubling an injury history. He’s a more efficient scorer than Arthur, but won’t space the floor the same way. His offense is primarily rooted in the paint. Koufos will allow Marc Gasol to get some needed rest and should be among the NBA’s best back-up centers.

Arthur, when healthy, is a better player than he showed last season. But there’s reason to wonder how much he can get back to his peak form. And this front office — high on Ed Davis — was not as high on Arthur as, for instance, Lionel Hollins was.

Financially, it’s also a plus. The deal frees up an extra $200,000 or so this season, but, more significantly, it puts the Grizzlies in the driver’s seat for 2014-2015. Arthur’s deal was a player option for $3.5 million that season. Koufos’ deal is a team option for $3 million, which is more advantageous for the Grizzlies.

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News

ZZZZZombies

Addison Engelking says Brad Pitt’s epic, World War Z, is less than epic.

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Fly On The Wall Blog Opinion

Two Headed Turtle!?!??!

I just read an article about a female two-headed turtle that was born in the San Antonio Zoo. They’ve decide to name them Thelma and Louise.

How Ooze REALLY affects baby turtles... #knowthetruth
  • How Ooze REALLY affects baby turtles… #knowthetruth
  • Years from now I hope to read an update about them breaking out and robbing gas stations. Then instead of surrendering to zoo authorities, they decided to slowly crawl off a cliff into a the Grand Canyon.

    TURTLE POWER!!!

    • TURTLE POWER!!!
    Categories
    Food & Drink Hungry Memphis

    South Memphis Farmers Market Unveils New Facility

    outsidemarket.JPG

    The South Memphis Farmers Market held a ribbon-cutting on Thursday morning to unveil its new facility.

    An old fish market on the site where the market had been held at South Parkway and Mississippi has been transformed. Painted a smart tomato red and white, the building is divided into two sections. One side will house a 2,000-square-foot green grocery that they hope to have up and running in January. The other side is the 1,200-square-foot demonstration/education kitchen.

    kitchen_front.JPG

    kitchen.JPG

    Curtis Thomas is deputy executive editor of The Works, which runs the market as part of its South Memphis Revitalization Action Plan. The grocery, he says, is designed to both address the food desert and to provide employment for South Memphis residents.

    Farmers who have been market vendors will provide the produce for the grocery. The grocery will be open 6 days a week.

    The kitchen side of the building has a large cooking/demo area at the back, with four small cooking stations along the south wall. There’s a large monitor on the north wall that will show the demo area from overhead, allowing class-goers a better view of techniques.

    Thomas says there will cooking demos and classes on market days. They also plan to have one-day classes as well as ongoing classes that will stretch for weeks. There will be cooking camps too. Some classes will be devoted to nutritional education.

    Getting the old fish market into shape took 18 months. The grocery side, Thomas says, was divided into 7 rooms. The floor levels did not match.

    “It’s been a process,” says Thomas of the building renovation,” but we’re delighted with the outcome.”

    The South Memphis Farmers Market, now in its fourth season, is open Thursdays from 10 a.m. to 6 p.m.