1998 Legislation
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HOUSE BILL NO. 593 – Beer/wine tax increase, use

HOUSE BILL NO. 593

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Daily Data Tracking History



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

Bill Text


H0593


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fourth Legislature                 Second Regular Session - 1998
                                                                        

                             IN 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 of  four
13      seven  dollars and  sixty-five   twenty-one
14     cents ($ 4.65  7.21 ) 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  by    regulation  
35      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)    Twenty   Twelve and nine-tenths  percent
 7             ( 20  12.9 %) shall be distributed to the alco-
 8             holism treatment account;
 9             (ii)   Thirty-three     Twenty-one  and  three-tenths
10               percent ( 33  21.3 %) shall be distrib-
11             uted to the permanent building account;  and 
12             (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
43      forty-five     seventy  cents ( 45  70
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)    Twelve    Seven  and  seventy-four  hundredths
30               percent ( 12  7.74 %) shall be distrib-
31             uted to the alcoholism treatment account;
32             (ii)   Five      Three  and  twenty-three  hundredths
33               percent  ( 5  3.23 %) shall be distrib-
34             uted to  the  Idaho  grape  growers  and  wine  producers  commission
35             account;  and 
36             (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 / Fiscal Impact


    





                          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