Nashville Welcomes Out of Town Ownership of Liquor Stores

Nashville Welcomes Out of Town Ownership of Liquor Stores

Nashville Tennessee has eliminated its local residency requirement for retail package stores. The change in the law opens the door to out of town and even out of state liquor store owners.

Previously, no one that resided outside of Nashville could own a liquor store in Nashville. A large part of the local application process was demonstrating residency in Nashville.

We see the change as being good for existing Nashville package store owners. Although the local residency requirement was a barrier to entry in the business, it also limited the pool of potential purchasers, decreasing the sales price of existing liquor stores.

Eliminating the local residency requirement also allows out of towners to start a distillery with a tasting room in Nashville.

Here is the skinny on how it came to be.

Last summer, the Tennessee Attorney General declared that the state residency requirement for ownership of wholesale and retail liquor stores was unconstitutional. Click here to read the opinion. Although we are not aware of ABC approval of any out of state owners to date, we expect the ABC to follow the AG opinion and approve out of state owners.

Striking down the state residency requirement led us to ask Metro Nashville lawyers if the the local residency requirement was also unconstitutional. Metro lawyers agreed that the local residency requirement was potentially problematic, but thought it best that the Metro Council amend city laws to make the change.

On April 4, 2013, Mayor Karl Dean signed the law, Ordinance No. BL2013-388 (00900658).

We appreciate the assistance of Metro Legal and legal counsel to the Council on this matter.

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