Anheuser-Busch Sues Tennessee Over $1.8 Million Tax Refund

(Photo: Matt Slocum/AP Photo)

The brewing giant behind Bud Light, Michelob Ultra and Cutwater has filed a lawsuit against the state of Tennessee and its Commissioner of Revenue, David Gerregano, alleging that the company was wrongfully denied a nearly $1.9 million tax refund.

Anheuser-Busch filed the complaint in David County Chancery Court on Friday, Aug 21. According to the company’s lawyers, AB InBev paid just over $1.88 million in taxes to Tennessee between January 2022 and December 2023. Shortly after, the state passed a franchise tax reform that authorized retroactive refunds on specific filings, for which AB InBev believed it was eligible and immediately applied.

After the company’s refund claim was left unresponded to for six months, the state reportedly classified it as a “deemed denial.” AB InBev says that “the Department’s denial of the claim for refund is erroneous, unjust, illegal, invalid, and contrary to law and should be overturned by this Court.”

The dispute revolves around a technicality in Tennessee franchise tax law. Up until 2024, companies like Anheuser-Busch had taxes calculated on either their net worth or the “actual value” of their property owned or used in Tennessee. An amendment passed under Gov. Bill Lee eliminated the property measure and allowed taxpayers to claim an automatic refund on any taxes paid therein after January 2021.

Because AB InBev is a Delaware-based company and owns no property in the state of Tennessee, it believes it is entitled to the entirety of its requested refund.

“Neither Defendant nor the Department has provided explanation as to why Plaintiff’s refund claim was not determined before the deadline by which Plaintiff was required to file this Complaint to preserve its rights to a refund,” the lawyers added.

The company has asked the judge to order the Tennessee Department of Revenue to issue a refund and pay for any attorneys’ fees and expenses of litigation incurred by the plaintiff.

AB InBev is widely regarded as the largest brewing company in the world, currently operating large-scale breweries across nine states including California, Colorado, Florida, Georgia, Ohio, Texas, Missouri, Virginia and New York.