Taxes, Privilege - As introduced, reduces the rate of tax on bottled soft drinks and barrels of beer; changes the distribution of the revenue from such taxes; provides for the eventual repeal of such taxes. - Amends TCA Title 57, Chapter 5 and Title 67, Chapter 4.

HB 521 reduces the tax on beer from $4.29 to $2.00 per barrel and lowers the tax on bottled soft drinks from 1.2% to 0.9% of gross receipts. The bill redirects 50% of the beer tax revenue to highway litter prevention programs and 40% of the soft drink tax revenue to recycling grants for materials like aluminum and plastic. It requires annual reports on fund usage and sets a sunset provision: both taxes will be repealed by July 1, 2028, or upon enactment of mandatory container deposit laws. The bill directly affects beverage manufacturers, distributors, and retailers in Tennessee.