ALC-18 – Alcohol Inventory Sale or Transfer upon the Closing or Sale of a Business

A retailer licensed under Tenn. Code Ann. §§ 57-3-204, 57-3-803, or 57-4-101 that sells or closes its licensed establishment may sell or transfer its alcohol inventory to the purchaser of the establishment or to another licensed establishment. Inventory may include both opened and unopened containers of alcohol. The purchaser or establishment receiving the inventory must hold the same type of license held by the seller.

The following requirements must be met prior to the completion of the inventory transfer or sale:

  • The seller must provide both the Alcoholic Beverage Commission and Department of Revenue with written notice at least 10 days prior to the sale or transfer of the inventory. The written notice must identify the person or entity receiving the inventory, the date of the sale or transfer, and the quantity, types, and brands of alcohol being sold or transferred.
  • Invoices and debts relating to the alcoholic beverages or wine sold or transferred must be paid in full prior to the sale or transfer.
  • The purchaser or transferee must be licensed prior to the completion of the sale or transfer.

Notice to the Department of Revenue may be sent by email to the Audit Division at The alcohol transfer letter and alcohol inventory form should be included in the email and are available on the Department’s website here.

Reference: Public Chapter 76 (2021). Tenn. Code Ann. §§ 57-3-204, 57-3-803, and 57-4-101.


Note: This article was updated on April 16, 2024. The previous version of ALC-18 is available here.

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