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H0649......................................................by STATE AFFAIRS
DESSERT WINE - SALE - Amends and adds to existing law to permit the sale of
dessert wine within the counties with the approval of county commissioners
or the electorate of the county; and to impose an excise tax of seventy
cents per gallon on dessert wine sold in Idaho.
02/21 House intro - 1st rdg - to printing
02/22 Rpt prt - to St Aff
H0649
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 649
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO THE SALE OF WINE; AMENDING SECTION 23-1303, IDAHO CODE, TO PROVIDE
3 DEFINITIONS OF "TABLE WINE" AND "DESSERT WINE," TO FURTHER DEFINE OTHER
4 TERMS AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 23-1304, IDAHO
5 CODE, TO PERMIT THE SALE OF DESSERT WINE WITHIN THE COUNTIES OF THE STATE
6 WITH THE APPROVAL OF COUNTY COMMISSIONERS OR THE ELECTORATE OF THE COUNTY,
7 TO PROVIDE THE PROCESS FOR SUCH APPROVAL AND TO MAKE TECHNICAL CORREC-
8 TIONS; AMENDING SECTION 23-1319, IDAHO CODE, TO IMPOSE AN EXCISE TAX OF
9 SEVENTY CENTS PER GALLON ON DESSERT WINE SOLD WITHIN THE STATE OF IDAHO.
10 Be It Enacted by the Legislature of the State of Idaho:
11 SECTION 1. That Section 23-1303, Idaho Code, be, and the same is hereby
12 amended to read as follows:
13 23-1303. DEFINITIONS. The following terms as used in this chapter are
14 hereby defined as follows:
15 (a1) "Table wWine" shall means any alcoholic beverage containing not more
16 than sixteen percent (16%) alcohol by volume obtained by the fermentation of
17 the natural sugar content of fruits or other agricultural products containing
18 sugar whether or not other ingredients are added.
19 (b2) "Dessert wine" means any alcoholic beverage containing more than
20 sixteen percent (16%) alcohol by volume but not exceeding twenty-four percent
21 (24%) alcohol by volume obtained by the normal alcoholic fermentation of the
22 natural sugar content of fruits or other agricultural products containing
23 sugar with or without the addition, after fermentation, of pure condensed must
24 and with or without added brandy or alcohol, whether or not other ingredients
25 are added. Dessert wine as defined herein shall not be deemed to be a spirit-
26 based beverage for the purposes of subsection (17) of this section.
27 (3) "Director" means the director of the department of law enforcement of
28 the state of Idaho.
29 (c4) "Retail table wine license" means a license issued by the director,
30 authorizing a person to sell table wine at retail for consumption off the
31 licensed premises.
32 (5) "Retail dessert wine license" means a license issued by the director,
33 authorizing a person to sell dessert wine at retail for consumption off the
34 licensed premises.
35 (d6) "Wine distributor's license" means a license issued by the director
36 to a person authorizing such person to distribute table wine or dessert wine
37 to retailers within the state of Idaho.
38 (e7) "Wine importer's license" means a license issued by the director to
39 a person authorizing such person to import table wine or dessert wine into the
40 state of Idaho and to sell and distribute such wines to a distributor.
41 (f8) "Retailer" means a person to whom a retail table wine license or a
42 retail dessert wine license has been issued.
43 (g9) "Distributor" means a person to whom a wine distributor's license
2
1 has been issued.
2 (h10) "Importer" means a person to whom a wine importer's license has been
3 issued.
4 (i11) "Winery" means a place, premises or establishment within the state
5 of Idaho for the manufacture or bottling of table wine or dessert wine for
6 sale.
7 (j12) "Winery license" means a license issued by the director authorizing
8 a person to maintain a winery.
9 (k13) "Vintner" means a person who manufactures, bottles, or sells table
10 wine or dessert wine to importers for resale within this state other than a
11 licensed "winery" as herein defined.
12 (l14) "Person" includes an individual, firm, copartnership, association,
13 corporation, or any group or combination acting as a unit, and includes the
14 plural as well as the singular unless the intent to give a more limited mean-
15 ing is disclosed by the context in which it is used.
16 (m15) "Wine by the drink license" means a license to sell table wine or
17 dessert wine by the individual glass or opened bottle at retail, for consump-
18 tion on the premises only.
19 (n16) "Domestic produced product" means wine at least seventy-five percent
20 (75%) of which by volume is derived from fruit or agricultural products grown
21 in Idaho.
22 (o17) "Low proof spirit beverages" means any alcoholic beverage containing
23 not more than fourteen percent (14%) alcohol by volume obtained by distilla-
24 tion mixed with drinkable water, fruit juices and/or other ingredients in
25 solution. These products shall be considered and taxed as table wine.
26 Spirit-based beverages exceeding fourteen percent (14%) alcohol by volume
27 shall be considered as liquor and sold only through the state liquor dispen-
28 sary system.
29 (18) "Wine" includes table wine and dessert wine, unless the context
30 requires otherwise.
31 (p19) All other words and phrases used in this chapter, the definition of
32 which is not herein given, shall be given their ordinary and commonly under-
33 stood and accepted meaning.
34 SECTION 2. That Section 23-1304, Idaho Code, be, and the same is hereby
35 amended to read as follows:
36 23-1304. COUNTY OPTION -- RESOLUTION OF COUNTY COMMISSIONERS -- ORDER FOR
37 ELECTION -- FORM OF BALLOT -- EFFECT OF ELECTION OR RESOLUTION. There is
38 hereby granted to the board of county commissioners of each of the several
39 counties of this state the right and authority to permit the sale of table
40 wine and/or dessert wine, as defined in this chapter, within the borders of
41 the several counties of this state, which may be exercised in the following
42 manner:
43 (a) tThe board of county commissioners of each county of this state may,
44 by resolution regularly adopted, provided that retail sale of table wine
45 and/or dessert wine, as defined in this chapter, shall be permitted within the
46 county, and upon a certification of such resolution to the director, a retail
47 table wine and/or dessert wine license shall thereafter be issued for premises
48 within such county so long as such resolution remains in effect; or
49 (b) tThe board of county commissioners of each of the several counties of
50 this state may submit the question of permitting the sale of table wine and/or
51 dessert wine at retail within the boundaries of the county to the electors of
52 the county.
53 The board of county commissioners may make an order calling an election to
3
1 be held, subject to the provisions of section 34-106, Idaho Code, within said
2 county in the manner provided by law for holding elections for county offi-
3 cers. All laws of the state of Idaho relating to the holding of elections for
4 county officers shall apply to the holdings of the election provided for in
5 this section, except where specifically modified herein.
6 Such election may also be called upon written petition of registered elec-
7 tors equal in number to twenty percent (20%) of the registered, qualified
8 electors of the county for the last general election under the following con-
9 ditions:
10 (a) The petition for such an election shall be in substantially the fol-
11 lowing form:
12 RETAIL WINE SALE PETITION
13 To the Honorable County Commissioners of the County of ...., State of
14 Idaho:
15 We, the undersigned citizens and registered, qualified electors of the
16 County of ...., respectfully demand that the Board of County Commissioners
17 submit the question of permitting the sale of wine at retail within the bound-
18 aries of the County of .... to the electors of the county in the manner pro-
19 vided in section 23-1304, Idaho Code.
20 We, each for himself, say: I am a registered elector of the County of ....
21 and my residence, post-office address, county, election precinct and the date
22 I signed this petition are correctly written after my name.
23 Name Residence Post Office County Election Precinct Date
24 (If in a city, street and number)
25 (Here follow twenty numbered lines for signatures)
26 (b) Before or at the time of beginning to circulate any petition for an
27 election to determine sale of wine at retail, the person or persons, organiza-
28 tion or organizations, under whose authority the petition is to be circulated,
29 shall send or deliver to the county clerk a copy of such petition duly signed
30 by at least twenty (20) electors eligible to sign such petition. The county
31 clerk shall immediately examine the petition and specify the form and kind and
32 size of paper on which the petition shall be printed and circulated for fur-
33 ther signatures. All petitions and sheets for signatures shall be printed on a
34 good quality bond or ledger paper, on pages eight and one-half (8 1/2) inches
35 in width by thirteen (13) inches in length, with a margin of one and three-
36 fourths (1 3/4) inches at the top for binding, and the sheets for signatures
37 shall have numbered lines thereon from one (1) to twenty (20) for signatures.
38 The petition shall be prepared in sections, with each section numbered consec-
39 utively. Each section of a petition must have a printed copy of the petition
40 as the first page, and each section shall have attached to it not more than
41 ten (10) sheets for signatures.
42 (c) The county clerk shall indicate in writing on the petition that he
43 has approved it as to form and the date of such approval. Upon approval as to
44 form, the county clerk shall inform the person or persons, organization or
45 organizations, under whose authority the petition is to be circulated, in
46 writing, that the petition must be perfected with the required number of sig-
47 natures within one hundred eighty (180) days following the date of approval as
48 to form. Any petition that has not been perfected with the required number of
49 certified signatures within the one hundred eighty (180) days allowed shall be
50 declared null and void ab initio in its entirety, except for the extension
51 allowed for in subsection (g) of this section.
52 (d) Each and every signature sheet of each petition containing signatures
53 shall be verified on the face thereof in substantially the following form by
4
1 the person who circulated said sheet of the petition, by his or her affidavit
2 thereon, as a part thereof:
3 State of Idaho
4 County of ....
5 I, ...., swear, under penalty of perjury, that every person who signed
6 this sheet of the foregoing petition signed his or her name thereto in my
7 presence. I believe that each has stated his or her name and the accompanying
8 required information on the signature sheet correctly, and that the person was
9 eligible to sign this petition.
10 ....(Signature)
11 ....Post-Office Address
12 Subscribed and sworn to before me this .... day of ...., 1920...
13 Notary Seal .......................
14 Notary Public
15 Residing at ...........
16 (e) All petitions with attached signature sheets shall be presented to
17 the county clerk on the same day and a cursory examination of the petitions
18 shall be made by him. The cursory examination shall be made to determine
19 whether the petitions apparently contain the necessary number of signatures.
20 If the total number of signatures on the petitions is not sufficient to sat-
21 isfy the number required by this law, all petitions with attached signature
22 sheets shall be returned to the person or organization attempting to file
23 them, and further signatures may be gathered. If the cursory examination of
24 the signature sheets reveals:
25 (1) erasures on any signature;
26 (2) illegible or unidentifiable signatures; or
27 (3) signatures not properly identified by all the information required on
28 the sheet,
29 the county clerk shall summarily reject such signature and such signatures
30 shall not be counted. Each rejected signature shall be drawn through with ink
31 and initialed by the county clerk or his deputy. If the total number of signa-
32 tures not rejected is not sufficient to satisfy the number required by law,
33 all petitions with attached signature sheets shall be returned to the person
34 or organization attempting to file them, and further signatures may be gath-
35 ered.
36 (f) All petitions presented to the county clerk found to apparently con-
37 tain the necessary number of signatures, after the cursory examination pro-
38 vided for in subsection (e) of this section, shall be filed with the county
39 clerk and become public records of the county not to be returned. The county
40 clerk shall examine each signature purported to be that of a registered elec-
41 tor and compare each such signature with the registration documents available
42 to him. The county clerk shall summarily reject all signatures which are not
43 the signatures of registered electors; and such rejected signatures shall not
44 be counted. Each rejected signature shall be drawn through with ink and ini-
45 tialed by the clerk or his deputy. The county clerk may take not to exceed
46 twenty (20) days after filing of the petition to complete his examination. The
47 county clerk shall certify each signature found to comply with all of the
48 requirements of this act by an appropriate mark following each signature. The
49 county clerk shall total the number of certified signatures and certify the
50 number thereof to the board of county commissioners.
51 (g) In the event that a petition filed with the county clerk does not
52 contain the required number of certified signatures, the county clerk shall
53 inform the person or organization under whose authority the petition was cir-
54 culated that the petition is defective for lack of certified signatures, and
55 specify the number of additional signatures required to make the petition
5
1 valid. The petition must be perfected within sixty (60) days of the date that
2 the clerk finds the petition defective for lack of certified signatures. If
3 the petition is not perfected within the sixty (60) day period, the clerk
4 shall declare the petition null and void ab initio in its entirety.
5 (h) In the event the county clerk shall certify to the board of county
6 commissioners that a petition contains the required number of signatures of
7 registered, qualified electors, said governing body shall forthwith make an
8 order calling an election to be held, subject to the provisions of section
9 34-106, Idaho Code, within said county in the manner provided by law for hold-
10 ing elections for county officers.
11 In addition to the other requirements of law, the notice of election shall
12 notify the electors of the issue to be voted upon at said election. The county
13 recorder must furnish the ballots to be used in such election, which ballots
14 must contain the following words:
15 "Sale of table wine at retail, Yes,"
16 "Sale of table wine at retail, No."
17 and, if applicable,
18 "Sale of dessert wine at retail, Yes,"
19 "Sale of dessert wine at retail, No."
20 and the elector in order to vote must mark an "X" opposite one (1) of the
21 questions in the space provided therefor. Upon a canvass of the votes cast,
22 the county recorder shall certify the result thereof to the director. If a
23 majority of the votes cast are "Sale of wine at retail, Yes," affirmative on
24 the issue presented, licenses shall be issued in said county as in this chap-
25 ter provided. If a majority of the votes cast are "Sale of wine at retail,
26 No," negative on the issue presented, then no license shall be issued in said
27 county unless thereafter authorized by a subsequent election in said county
28 which may be called in the manner provided for herein.
29 No resolution or election prohibiting the sale of wine within the bound-
30 aries of any county of this state shall have an effective date prior to the
31 end of the then current calendar year if at the time of the adoption thereof
32 there shall be any outstanding valid retail wine licenses in good standing for
33 premises within such county.
34 The signer of any petition under this chapter may remove his own name from
35 the petition by crossing out, obliterating, or otherwise defacing his own sig-
36 nature at any time prior to the time when the petition is filed. The signer of
37 any such petition may have his name removed from the petition at any time
38 after the petition has been filed, but prior to the time when an election has
39 been ordered, by presenting or submitting to the county clerk a signed,
40 acknowledged statement that the signer desires to have his name removed from
41 the petition. The statement shall contain sufficient information to clearly
42 identify the signer. The county clerk shall immediately strike the signer's
43 name from the petition, and adjust the total of certified signatures on the
44 petition accordingly. The statement shall be attached to, and become a part
45 of, the petition.
46 A person is guilty of a felony punishable by imprisonment in the state
47 penitentiary, not to exceed two (2) years, who:
48 (a) Signs any name other than his own to any petition.
49 (b) Knowingly signs his name more than once on the same petition.
50 (c) Wilfully willfully or knowingly circulates, publishes or exhibits any
51 false statement or representation concerning the contents, purport or effect
52 of any petition for the purpose of obtaining any signature to any such peti-
53 tion, or for the purpose of persuading any person to sign any such petition.
54 (d) Circulates or causes to circulate any petition, knowing the same to
55 contain false, forged or fictitious names.
6
1 (e) Makes any false affidavit concerning any petition or the signatures
2 appended thereto.
3 (f) Knowingly makes any false return, certification or affidavit concern-
4 ing any petition or the signatures appended thereto.
5 (g) Threatens any person with punitive or retaliatory action for the pur-
6 pose of obtaining signatures or hindering or delaying the obtaining of signa-
7 tures upon a petition.
8 SECTION 3. That Section 23-1319, Idaho Code, be, and the same is hereby
9 amended to read as follows:
10 23-1319. EXCISE TAX -- SALES INCLUDED -- REFUND FOR EXPORT SALES --
11 REFUND FOR BREAKAGE OR SPOILAGE -- DISTRIBUTION OF REVENUE. Upon all table
12 wines sold by a distributor or winery to a retailer or consumer for use within
13 the state of Idaho pursuant to this act there is hereby imposed an excise tax
14 of forty-five cents (45) per gallon. Upon all dessert wines sold by a dis-
15 tributor or winery to a retailer or consumer for use within the state of Idaho
16 pursuant to this chapter there is hereby imposed an excise tax of seventy
17 cents (70) per gallon. Sales of wine by a distributor or winery for the pur-
18 pose of and resulting in export of wine from this state for resale outside
19 this state shall be exempt from the taxes on wine imposed by this chapter.
20 (a) Every sale of wine by a distributor to a retailer shall constitute a
21 sale of wine for resale or consumption in this state, whether the sale is made
22 within or without this state, and the distributor shall be liable for the pay-
23 ment of taxes. In every transfer of wine by a licensed winery to its licensed
24 retail outlet, the winery shall be liable for payment of taxes.
25 (b) When wine has been destroyed by breakage or has spoiled or otherwise
26 become unfit for beverage purposes prior to payment of taxes on it, the dis-
27 tributor, upon satisfactory proof of destruction or spoilage, shall be enti-
28 tled to deduct from existing inventories, subject to tax, the amount of wine
29 so destroyed or spoiled.
30 (c) If the tax commission determines that any amount due under this chap-
31 ter has been paid more than once or has been erroneously or illegally col-
32 lected or computed, the commission shall set forth that fact in its records
33 and the excess amount paid or collected may be credited on any amount then due
34 and payable to the commission from that person and any balance refunded to the
35 person by whom it was paid or to his successors, administrators or executors.
36 The commission is authorized and the state board of tax appeals is authorized
37 to order the commission in proper cases to credit or refund such amounts
38 whether or not the payments have been made under protest and certify the
39 refund to the state board of examiners.
40 (d) No credit or refund shall be allowed or made after three (3) years
41 from the time the payment was made, unless before the expiration of that
42 period a claim is filed by the taxpayer. The three (3) year period allowed by
43 this subsection for making refunds or credit claims shall not apply in cases
44 where the tax commission asserts a deficiency of tax imposed by law, and tax-
45 payers desiring to appeal or otherwise seek a refund of amounts paid in obedi-
46 ence to deficiencies must do so within the time limits elsewhere prescribed by
47 law.
48 (e) All revenue received pursuant to this chapter shall be distributed as
49 follows:
50 (1) An amount of money shall be distributed to the state refund account
51 fund sufficient to pay current refund claims as authorized in subsection
52 (c) of this section and those moneys are continuously appropriated.
53 (2) The balance remaining after distributing the amount in paragraph (1)
7
1 of this subsection shall be distributed as follows:
2 (i) Twelve percent (12%) shall be distributed to the alcoholism
3 treatment account fund;
4 (ii) Five percent (5%) shall be distributed to the Idaho grape grow-
5 ers and wine producers commission account fund; and
6 (iii) The remainder shall be distributed to the general account
7 fund.
8 (f) Any person who is not a distributor or winery but who makes, whether
9 as principal, agent or broker, any sales of wine not otherwise taxed under
10 this section and not exempt from such tax, shall be liable for payment of
11 taxes imposed by this section. This subsection shall not impose tax on wine
12 sold pursuant to section 23-1336, Idaho Code.
STATEMENT OF PURPOSE
RS09843C2
Idaho's County Option Kitchen and Table Wine Act, passed in 1971,
permitted counties to determine whether wines containing not more than 14%
alcohol, by volume, could be sold in private retail outlets within the respective
counties.
This legislation permits counties to have the same option with reference to
dessert wines containing not more than 24% alcohol by volume. The proposal
requires the affirmative approval of county commissioners, or the electorate of the
county, before such retail sales may occur. The law also permits revocation of
previously granted approval, either by the commissioners or by the electorate of
the county.
The proposal does not remove the State Liquor Dispensary from sales of
dessert wines, but provides an opportunity for greater customer selection of
premium wines and private retailer participation in this limited market.
The legislation establishes an excise tax of seventy cents per gallon on
dessert wines sold in private retail establishments. In addition, sales tax would be
imposed on the full retail price, including the wine excise tax.
FISCAL NOTE
It is not anticipated that there would be any negative fiscal impact on state funds
or that the present level of dessert wine sales in the State Liquor Dispensary
would be diminished. To the extent that private retail sales of premium dessert
wines were successful, the state would benefit from the increased revenues from
excise tax, sales tax, and income tax.
CONTACT: Bill Roden
Idaho Beer & Wine Distributors Association
Telephone: 336-7930
STATEMENT OF PURPOSE/FISCAL NOTE H 649