Quote from TN Department of Revenue website (emphasis added):

Liquor-by-the-Drink Tax and Alcoholic Beverages for Consumption Off Premises

Governor Lee’s Executive Order no. 17 authorizes the temporary sale of alcoholic beverages for consumption off of the premises by a restaurant. For further details and requirements surrounding such sales, please see the Executive Order.

Because these sales are for consumption off the premises, the liquor-by-the-drink tax imposed by Tenn. Code Ann. § 57-4-301 does not apply. No liquor-by-the-drink tax should be charged on take-out or delivery sales while the Executive Order is in effect. Businesses should not collect the liquor-by-the-drink tax on these sales, either by adding tax to the menu price or including the tax in the menu price. Any liquor-by-the-drink taxes that are collected must be remitted to the department.

Please note that sales and use tax will continue to apply to these sales.

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