Distributors say they may deliver during suspensions but not after revocation; board discusses Tennessee sales-and-use documentation

Eddie Davis, representing a beverage-distributing company, told the Chattanooga Beer Board on June 18 that distributors typically will not deliver to businesses whose beer permits have been revoked but may continue deliveries to establishments that are only suspended.

"If they are suspended, we still can," Davis said when the board discussed whether distributors would supply suspended accounts. He added that if a business lacks a valid license the distributor would not sell to them.

Board members and distributors discussed whether distributors should require proof of Tennessee sales-and-use registration or a state exemption letter for nonprofit organizations before making deliveries to events. Davis said distributors often require a Tennessee sales-and-use document or a state nonprofit exemption letter (the state exemption requires a separate application and fee) even if the organization has federal 501(c)(3) documentation.

Staff and panelists noted practical limits: obtaining state documentation can delay a business or event, and local staff said that regulatory and enforcement divisions communicate with distributors about delinquent licenses. The board did not adopt new rules at the meeting but encouraged continued coordination between staff and distributors to limit sales to revoked-license holders and to assist event organizers with the proper tax documentation.