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H0593.............................................................by MILLER BEER/WINE TAX - Amends existing law to increase by 55% the current taxation of beer and wine and to distribute one-half of the proceeds to the Public School Income Fund for substance abuse programs and one-half to the counties for juvenile probation services, $100,000 of which is to be diverted to the Department of Health and Welfare to provide regional substance abuse programs. 02/02 House intro - 1st rdg - to printing 02/03 Rpt prt - to Rev/Tax
H0593|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 593 BY MILLER 1 AN ACT 2 RELATING TO TAXATION OF BEER AND WINE; AMENDING SECTION 23-1008, IDAHO CODE, 3 TO INCREASE THE TAX ON BEER AND TO PROVIDE THE DISTRIBUTION OF THE 4 INCREASED REVENUE TO PROGRAMS FOR SUBSTANCE ABUSE AND JUVENILE PROBATION 5 SERVICES AND TO MAKE TECHNICAL CORRECTIONS; AND AMENDING SECTION 23-1319, 6 IDAHO CODE, TO INCREASE THE TAX ON WINE AND TO PROVIDE THE DISTRIBUTION OF 7 THE INCREASED REVENUE TO PROGRAMS FOR SUBSTANCE ABUSE AND JUVENILE PROBA- 8 TION SERVICES. 9 Be It Enacted by the Legislature of the State of Idaho: 10 SECTION 1. That Section 23-1008, Idaho Code, be, and the same is hereby 11 amended to read as follows: 12 23-1008. TAX -- DISTRIBUTION -- RULES -- REPORTS. (1) A tax offour13seven dollars andsixty-fivetwenty-one 14 cents ($4.657.21 ) per barrel of thirty-one 15 (31) gallons, and a like rate for any other quantity or fraction thereof, is 16 hereby levied and imposed upon each and every barrel of beer sold for use 17 within the state of Idaho. 18 Any wholesaler who shall sell beer, upon which the tax herein imposed has 19 not been paid and any person who shall purchase, receive, transport, store or 20 sell any beer upon which the tax herein imposed has not been paid, shall be 21 guilty of a misdemeanor, and any beer so purchased, received, transported, 22 stored or possessed or sold shall be subject to seizure by the commission, any 23 inspector or investigator of the commission, or by any sheriff, constable or 24 other police officer, and same may be removed and kept for evidence. Upon con- 25 viction of any person for violation of this section, the said beer, and all 26 barrels, kegs, cases, cartons and cans containing the same shall be forfeited 27 to the state of Idaho, and, in addition, the person so convicted shall be sub- 28 ject to the other penalties in this act prescribed. 29 Beer and all barrels, kegs, cases, cartons or cans so forfeited to the 30 state of Idaho shall be sold by the commission at public auction to any 31 brewer, wholesaler or retailer, licensed under the provision of this act, mak- 32 ing the highest bid. Such sale shall be held at such place and time as may be 33 designated by the commission after reasonable notice thereof given in such 34 manner and for such time as the commission may byregulation35 rule prescribe. From the purchase price received upon such sale, 36 the commission shall first deduct an amount sufficient to pay the tax due on 37 such beer, and to pay all costs incurred in connection with such sale. The 38 commission shall deposit the balance remaining with the state treasurer, who 39 shall place the same in the general account of the state of Idaho, and it 40 shall become a part thereof. 41 (2) The revenues received from the taxes, interest, penalties, or defi- 42 ciency payments imposed by this section shall be distributed as follows: 43 (a) An amount of money shall be distributed to the state refund account 2 1 sufficient to pay current refund claims. All refunds authorized by law to 2 be paid by the tax commission shall be paid through the state refund 3 account and those moneys are continuously appropriated. 4 (b) The balance remaining after distributing the amount in paragraph (a) 5 of this subsection shall be distributed as follows: 6 (i)TwentyTwelve and nine-tenths percent 7 (2012.9 %) shall be distributed to the alco- 8 holism treatment account; 9 (ii)Thirty-threeTwenty-one and three-tenths 10 percent (3321.3 %) shall be distrib- 11 uted to the permanent building account;and12 (iii) Seventeen and seventy-five hundredths percent (17.75%) 13 shall be distributed to the public school income fund to be utilized 14 to facilitate and provide substance abuse programs in the public 15 school system; 16 (iv) Seventeen and seventy-five hundredths percent (17.75%) shall be 17 distributed to the counties, after first diverting from this portion 18 fifty thousand dollars ($50,000) to be distributed to the department 19 of health and welfare to be used to provide regional substance abuse 20 programs, to be utilized for county juvenile probation services, 21 based upon the percentage the population of the county bears to the 22 population of the state as a whole; and 23 (v) The remainder shall be distributed to the general 24 account. 25 (3) The commission is empowered, and it shall be the commission's duty to 26 prescribe rules :and regulations:27 (a) For reports by carriers for hire and also all other carriers owned 28 and/or employed, directly or indirectly, by out - of - 29 state brewers, dealers or other persons, of all deliveries of beer 30 in and into the state of Idaho, stating especially the origin and destina- 31 tion of the beer, the quantity thereof, and also the names and addresses, 32 respectively of the consignors and consignees. 33 (b) For reports by out - of - state brewers and 34 manufacturers of beer, of all shipments by them of beer into the state of 35 Idaho, stating especially the matters mentioned in paragraph (a) of this 36 subsection. 37 SECTION 2. That Section 23-1319, Idaho Code, be, and the same is hereby 38 amended to read as follows: 39 23-1319. EXCISE TAX -- SALES INCLUDED -- REFUND FOR EXPORT SALES -- 40 REFUND FOR BREAKAGE OR SPOILAGE -- DISTRIBUTION OF REVENUE. Upon all wines 41 sold by a distributor or winery to a retailer or consumer for use within the 42 state of Idaho pursuant to this act there is hereby imposed an excise tax of 43forty-fiveseventy cents (4570 44 [) per gallon. Sales of wine by a distributor or winery for the purpose 45 of and resulting in export of wine from this state for resale outside this 46 state shall be exempt from the taxes on wine imposed by this chapter. 47 (a) Every sale of wine by a distributor to a retailer shall constitute a 48 sale of wine for resale or consumption in this state, whether the sale is made 49 within or without this state, and the distributor shall be liable for the pay- 50 ment of taxes. In every transfer of wine by a licensed winery to its licensed 51 retail outlet, the winery shall be liable for payment of taxes. 52 (b) When wine has been destroyed by breakage or has spoiled or otherwise 53 become unfit for beverage purposes prior to payment of taxes on it, the dis- 3 1 tributor, upon satisfactory proof of destruction or spoilage, shall be enti- 2 tled to deduct from existing inventories, subject to tax, the amount of wine 3 so destroyed or spoiled. 4 (c) If the tax commission determines that any amount due under this chap- 5 ter has been paid more than once or has been erroneously or illegally col- 6 lected or computed, the commission shall set forth that fact in its records 7 and the excess amount paid or collected may be credited on any amount then due 8 and payable to the commission from that person and any balance refunded to the 9 person by whom it was paid or to his successors, administrators or executors. 10 The commission is authorized and the state board of tax appeals is authorized 11 to order the commission in proper cases to credit or refund such amounts 12 whether or not the payments have been made under protest and certify the 13 refund to the state board of examiners. 14 (d) No credit or refund shall be allowed or made after three (3) years 15 from the time the payment was made, unless before the expiration of that 16 period a claim is filed by the taxpayer. The three (3) year period allowed by 17 this subsection for making refunds or credit claims shall not apply in cases 18 where the tax commission asserts a deficiency of tax imposed by law, and tax- 19 payers desiring to appeal or otherwise seek a refund of amounts paid in obedi- 20 ence to deficiencies must do so within the time limits elsewhere prescribed by 21 law. 22 (e) All revenue received pursuant to this chapter shall be distributed as 23 follows: 24 (1) An amount of money shall be distributed to the state refund account 25 sufficient to pay current refund claims as authorized in subsection (c) of 26 this section and those moneys are continuously appropriated. 27 (2) The balance remaining after distributing the amount in paragraph (1) 28 of this subsection shall be distributed as follows: 29 (i)TwelveSeven and seventy-four hundredths 30 percent (127.74 %) shall be distrib- 31 uted to the alcoholism treatment account; 32 (ii)FiveThree and twenty-three hundredths 33 percent (53.23 %) shall be distrib- 34 uted to the Idaho grape growers and wine producers commission 35 account;and36 (iii) Seventeen and seventy-four hundredths percent (17.74%) 37 shall be distributed directly to the public school income fund to be 38 utilized to facilitate and provide substance abuse programs in the 39 public school system; 40 (iv) Seventeen and seventy-four hundredths percent (17.74%) shall be 41 distributed to the counties, after first diverting from this portion 42 fifty thousand dollars ($50,000) to be distributed to the department 43 of health and welfare to be used to provide regional substance abuse 44 programs, to be utilized for county juvenile probation services based 45 upon the percentage the population of the county bears to the popula- 46 tion of the state as a whole; and 47 (v) The remainder shall be distributed to the general 48 account. 49 (f) Any person who is not a distributor or winery but who makes, whether 50 as principal, agent or broker, any sales of wine not otherwise taxed under 51 this section and not exempt from such tax, shall be liable for payment of 52 taxes imposed by this section. This subsection shall not impose tax on wine 53 sold pursuant to section 23-1336, Idaho Code.
STATEMENT OF PURPOSE
RS07584C1
This legislation addresses the funding need for reduction
of juvenile crime through amplified prevention and
diversion, by increasing the excise tax on beer and wine.
This tax has not been changed since 1961. The purpose is
to provide additional revenue for substance and alcohol
abuse programs in the public schools, emphasizing early
intervention with the coming generation of K-8 students,
including those with behavior patterns predictive of
problematic conduct as older students and adolescents.
The revenue will also support cooperation and integration
of this school-based project with regional substance
abuse programs and county juvenile probation services.
FISCAL NOTE
This legislation via a 55 percent increase in excise tax
will add $3 million to the general fund to be dedicated
to the stated purpose.
CONTACT: Representative Maynard Miller
Phone: 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE
Bill No. H 593