A bar or restaurant in Knoxville usually needs three alcohol approvals. There’s a liquor license from the state, a beer permit from the City’s Beer Board, and a city liquor license that follows the state one. Each runs on its own track. The Beer Board meets once a month, so its calendar matters as much as the paperwork.
This guide walks through each approval for a business inside Knoxville city limits. Rules and fees change, so confirm the details with the City and the state before you file.
Start with your address
First, confirm whether your address is inside Knoxville city limits. That decides which local government handles your beer permit. Inside the city, it’s the City of Knoxville. Outside the city but in Knox County, the county’s beer board handles it instead. A Knoxville mailing address doesn’t always mean the property is in the city, so check first.
The state liquor license
The Tennessee Alcoholic Beverage Commission (TABC) licenses spirits, wine, and high-gravity beer, which is beer stronger than 8% alcohol by weight. A restaurant or bar that pours cocktails needs a liquor-by-the-drink license from the TABC.
The license type depends on what you expect to sell most. A restaurant license generally fits a business that expects food sales to beat sales of wine, spirits, and high-gravity beer. A limited-service restaurant license, often called a bar license, fits a business that expects to sell more alcohol than food. It also needs a zoning letter from the City and a written security plan.
The state application goes through the TABC’s online system with a $300 application fee. You’ll need your lease or deed, a business plan, and your menu. You’ll also need your business licenses, a certificate of occupancy, tax registrations, and details on every owner. Before approval, a TABC agent inspects the location for at least 40 seats, a working kitchen, and a current health permit. By the TABC’s own numbers, the average application took 38 days from filing to approval in 2023. Our step-by-step guide to getting a liquor license in Tennessee covers the full state process.
The City of Knoxville liquor license
Knoxville adds a local liquor-by-the-drink license on top of the state one. There’s no separate application for it. Once the state issues your license and notifies the City, the City’s Business Tax Office tells you about the city license and its fee. Plan for a local fee in addition to the state fee.
The City of Knoxville beer permit
Beer at 8% alcohol by weight or less needs a beer permit, and a TABC license doesn’t cover it. Inside Knoxville, the City’s Business Tax Office handles the application, and the City Beer Board makes the decision.
Here’s how it works:
- The Beer Board is the City Council. Its nine members sit as the board and meet at 5 p.m. before the second City Council meeting of each month, in the Main Assembly Room of the City County Building.
- You have to appear in person before the Beer Board when your application is considered.
- Applications for a given month’s meeting must reach the Finance Department by the first of that month. Missing that date pushes you to the next month.
- The City warns that the process can be lengthy and recommends applying well before you open or buy a business.
- State law sets a $250 application fee for a beer permit, plus a yearly privilege tax of up to $100.
The Business Tax Office is in Room 445-450 of the City County Building at 400 Main Street, open 8 a.m. to 4:30 p.m. on weekdays. Its phone number is 865-215-2083. Our Tennessee beer permit page explains how beer permits work statewide.
Buying an existing bar or restaurant
Knoxville beer permits don’t transfer to a new owner. The City says a new owner can’t operate under the previous owner’s permit. Keeping beer on site without a permit can also lead to a denial. Tennessee law ties a beer permit to one owner, one location, and one business name. State liquor licenses don’t automatically transfer in a sale either. If you’re buying a business, build the new applications into your closing timeline. Our guide to hospitality due diligence in Tennessee covers what to check before you buy.
Opening near Market Square or the stadium
Knoxville runs Designated Outdoor Refreshment Areas, or DORAs, where guests can carry drinks from participating businesses through a marked outdoor zone. Joining a DORA takes a separate City approval. One requirement is a current Knoxville Alcohol Seller Training (KAST) certificate. Our Knoxville DORA guide covers the hours, maps, and rules.
Opening a liquor store instead
Package stores follow a different path. In Knoxville, a liquor store owner must apply to the City for a certificate of compliance before going to the TABC for a license.
Plan around the calendar
The state review can move quickly once the file is complete. The local side sets the pace, because the Beer Board meets once a month and applications are due by the first. Work backward from your opening date, and start the beer permit early so a missed deadline doesn’t cost you a month.
Where BevLaw Group fits
BevLaw Group has an office in Knoxville at 111 East Jackson Avenue, Suite 203. Licensing is where many owners first meet us. Our flat monthly plans also cover leases and vendor contracts, employment questions, regulatory defense, and the everyday questions that come up after you open.
If you’re planning a Knoxville opening or buying a business here, a short call before you sign the lease can save weeks later.