Tenn. wine transport bill concerns Revenue Dept.

While a proposal to loosen restrictions on bringing wine into the state is popular with vino lovers, Tennessee tax collectors are less enthusiastic.

The state Senate is scheduled to vote Monday on a bill that would let Tennesseans buy up to five cases at out-of-state wineries and carry them back into Tennessee. The change would mark the first time in at least 70 years that Tennesseans are allowed to transport alcohol into the state.

State Revenue Commissioner Reagan Farr said it will be difficult for the state to make sure the wine buyers have paid the state tax that is due if the bill becomes law.

"It would put us back in the posture of having to observe whether Tennessee licensed vehicles were going over there and paying their tax before bringing their wine over the border," Farr said.

Tennessee charges a $1.21 tax on each gallon of wine, along with a combined state and local sales taxes of up to 9.75 percent.

The bill sponsored by Sen. Doug Overbey, a Maryville Republican, is designed to overcome a recent federal appeals court opinion that found existing rules designed to promote Tennessee wineries are unfair to competitors from outside the state.

The House version of the bill is scheduled for a hearing in the State and Local Government Committee on Tuesday.