Tenn. Comp. R. & Regs. 0100-07-.04 - SATELLITE FACILITIES

(1) A winery or a farm wine producer licensee may have licensed not more than two (2) satellite facility locations. A winery may sell wine manufactured at the winery at its licensed satellite locations. Farm wine producers may sell wine produced from the grapes and/or fruits of their vineyard, orchard or fruit garden at its licensed satellite locations. Samples may be given or sold on the licensed premises at the licensed satellite facility except that no such sample shall exceed two ounces per variety for one person on the same day. Wine and wine samples sold for consumption on the licensed satellite premises shall be subject to the tax provided in T.C.A. § 57-4-301(c).

(2) Satellite facilities are required to obtain permits from the Commission. Satellite facilities may only be located in jurisdictions where it is lawful to manufacture intoxicating liquors.

(3) Wine sold at satellite facilities must be obtained from a wholesaler. Wholesalers may allow wineries and farm wine producers to deliver the wine to the satellite locations. Wholesalers permitting direct shipment shall include the amounts delivered in its inventory, report depletions for purposes to tax collection, and be responsible for the payment of taxes for depletions. Wineries and farm wine producers electing to exercising this delivery method to their respective satellite facilities locations shall advise the Commission of their election to do so and shall advise and receive confirmation from their wholesaler of each delivery, the quantity of delivery and such other information required by the wholesalers for the filing of inventory, reports, taxes etc. with the Tennessee Department of Revenue.

(4) Satellite facilities may sell items authorized to be sold at wineries.

(5) Up to three wineries, each with a total annual wine production of fifty thousand gallons or less, farm wineries, or any combination thereof may combine businesses for the operation of a single satellite facility, provided that such satellite facility shall count against the limit specified in paragraph (1) for each winery or farm winery participating in such satellite facility. Any violation of any rule or statute by a satellite facility shall be deemed to be a violation by any winery or farm winery that participates in the satellite facility.

Notes

Tenn. Comp. R. & Regs. 0100-07-.04

Original rule filed October 31, 1983: effective November 30, 1983. Amendment repealing and replacing the rule was filed March 10, 2010; effective June 8, 2010. Repeal and new rule filed December 18, 2015; effective 3/17/2016.

Authority: T.C.A. §§ 57-1-209, 57-3-104(c)(4), and 57-3-207.