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H0402..................................................by REVENUE AND TAXATION
BEER/WINE - TAX - Amends existing law to increase the tax on beer to seven
dollars and forty-four cents per barrel of thirty-one gallons; to increase the
tax on wine to seventy-five cents per gallon; and to revise the distribution
of revenues.
04/02 House intro - 1st rdg - to printing
Rpt prt - to Rev/Tax
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 402
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO TAXATION OF ALCOHOLIC BEVERAGES; AMENDING SECTION 23-1008, IDAHO
3 CODE, TO INCREASE THE TAX FOR BEER, TO REVISE THE DISTRIBUTION OF TAX REV-
4 ENUES AND TO MAKE TECHNICAL CORRECTIONS; AND AMENDING SECTION 23-1319,
5 IDAHO CODE, TO INCREASE THE TAX FOR WINE AND TO REVISE THE DISTRIBUTION OF
6 TAX REVENUES.
7 Be It Enacted by the Legislature of the State of Idaho:
8 SECTION 1. That Section 23-1008, Idaho Code, be, and the same is hereby
9 amended to read as follows:
10 23-1008. TAX -- DISTRIBUTION -- RULES -- REPORTS. (1) A tax of four seven
11 dollars and sixty-five forty-four cents ($4.657.44) per barrel of thirty-one
12 (31) gallons, and a like rate for any other quantity or fraction thereof, is
13 hereby levied and imposed upon each and every barrel of beer sold for use
14 within the state of Idaho.
15 Any wholesaler who shall sell beer, upon which the tax herein imposed has
16 not been paid and any person who shall purchase, receive, transport, store or
17 sell any beer upon which the tax herein imposed has not been paid, shall be
18 guilty of a misdemeanor, and any beer so purchased, received, transported,
19 stored or possessed or sold shall be subject to seizure by the commission, any
20 inspector or investigator of the commission, or by any sheriff, constable or
21 other police officer, and same may be removed and kept for evidence. Upon con-
22 viction of any person for violation of this section, the said beer, and all
23 barrels, kegs, cases, cartons and cans containing the same shall be forfeited
24 to the state of Idaho, and, in addition, the person so convicted shall be sub-
25 ject to the other penalties in this act prescribed.
26 Beer and all barrels, kegs, cases, cartons or cans so forfeited to the
27 state of Idaho shall be sold by the commission at public auction to any
28 brewer, wholesaler or retailer, licensed under the provisions of this act,
29 making the highest bid. Such sale shall be held at such place and time as may
30 be designated by the commission after reasonable notice thereof given in such
31 manner and for such time as the commission may by regulation rule prescribe.
32 From the purchase price received upon such sale, the commission shall first
33 deduct an amount sufficient to pay the tax due on such beer, and to pay all
34 costs incurred in connection with such sale. The commission shall deposit the
35 balance remaining with the state treasurer, who shall place the same in the
36 general account of the state of Idaho, and it shall become a part thereof.
37 (2) The revenues received from the taxes, interest, penalties, or defi-
38 ciency payments imposed by this section shall be distributed as follows:
39 (a) An amount of money shall be distributed to the state refund account
40 sufficient to pay current refund claims. All refunds authorized by law to
41 be paid by the tax commission shall be paid through the state refund
42 account and those moneys are continuously appropriated.
43 (b) Sixty-two and one-half percent (62.5%) of tThe balance remaining
2
1 after distributing the amount in paragraph (a) of this subsection shall be
2 distributed as follows:
3 (i) Twenty percent (20%) shall be distributed to the alcoholism
4 treatment account;
5 (ii) Thirty-three percent (33%) shall be distributed to the perma-
6 nent building account; and
7 (iii) The remainder shall be distributed to the general account.
8 (c) Thirty-seven and one-half percent (37.5%) of the balance remaining
9 after distributing the amount in paragraph (a) of this subsection shall be
10 distributed to the general account.
11 (3) The commission is empowered, and it shall be the commission's duty to
12 prescribe rules: and regulations:
13 (a) For reports by carriers for hire and also all other carriers owned
14 and/or employed, directly or indirectly, by out of state brewers, dealers
15 or other persons, of all deliveries of beer in and into the state of
16 Idaho, stating especially the origin and destination of the beer, the
17 quantity thereof, and also the names and addresses, respectively of the
18 consignors and consignees.
19 (b) For reports by out of state brewers and manufacturers of beer, of all
20 shipments by them of beer into the state of Idaho, stating especially the
21 matters mentioned in paragraph (a) of this subsection.
22 SECTION 2. That Section 23-1319, Idaho Code, be, and the same is hereby
23 amended to read as follows:
24 23-1319. EXCISE TAX -- SALES INCLUDED -- REFUND FOR EXPORT SALES --
25 REFUND FOR BREAKAGE OR SPOILAGE -- DISTRIBUTION OF REVENUE. Upon all wines
26 sold by a distributor or winery to a retailer or consumer for use within the
27 state of Idaho pursuant to this act there is hereby imposed an excise tax of
28 fortyseventy-five cents (475) per gallon. Sales of wine by a distributor or
29 winery for the purpose of and resulting in export of wine from this state for
30 resale outside this state shall be exempt from the taxes on wine imposed by
31 this chapter.
32 (a) Every sale of wine by a distributor to a retailer shall constitute a
33 sale of wine for resale or consumption in this state, whether the sale is made
34 within or without this state, and the distributor shall be liable for the pay-
35 ment of taxes. In every transfer of wine by a licensed winery to its licensed
36 retail outlet, the winery shall be liable for payment of taxes.
37 (b) When wine has been destroyed by breakage or has spoiled or otherwise
38 become unfit for beverage purposes prior to payment of taxes on it, the dis-
39 tributor, upon satisfactory proof of destruction or spoilage, shall be enti-
40 tled to deduct from existing inventories, subject to tax, the amount of wine
41 so destroyed or spoiled.
42 (c) If the tax commission determines that any amount due under this chap-
43 ter has been paid more than once or has been erroneously or illegally col-
44 lected or computed, the commission shall set forth that fact in its records
45 and the excess amount paid or collected may be credited on any amount then due
46 and payable to the commission from that person and any balance refunded to the
47 person by whom it was paid or to his successors, administrators or executors.
48 The commission is authorized and the state board of tax appeals is authorized
49 to order the commission in proper cases to credit or refund such amounts
50 whether or not the payments have been made under protest and certify the
51 refund to the state board of examiners.
52 (d) No credit or refund shall be allowed or made after three (3) years
53 from the time the payment was made, unless before the expiration of that
3
1 period a claim is filed by the taxpayer. The three (3) year period allowed by
2 this subsection for making refunds or credit claims shall not apply in cases
3 where the tax commission asserts a deficiency of tax imposed by law, and tax-
4 payers desiring to appeal or otherwise seek a refund of amounts paid in obedi-
5 ence to deficiencies must do so within the time limits elsewhere prescribed by
6 law.
7 (e) All revenue received pursuant to this chapter shall be distributed as
8 follows:
9 (1) An amount of money shall be distributed to the state refund account
10 sufficient to pay current refund claims as authorized in subsection (c) of
11 this section and those moneys are continuously appropriated.
12 (2) Sixty percent (60%) of tThe balance remaining after distributing the
13 amount in paragraph (1) of this subsection shall be distributed as fol-
14 lows:
15 (i) Twelve percent (12%) shall be distributed to the alcoholism
16 treatment account;
17 (ii) Five percent (5%) shall be distributed to the Idaho grape grow-
18 ers and wine producers commission account; and
19 (iii) The remainder shall be distributed to the general account.
20 (3) Forty percent (40%) of the balance remaining after distributing the
21 amount in paragraph (1) of this subsection shall be distributed to the
22 general account.
23 (f) Any person who is not a distributor or winery but who makes, whether
24 as principal, agent or broker, any sales of wine not otherwise taxed under
25 this section and not exempt from such tax, shall be liable for payment of
26 taxes imposed by this section. This subsection shall not impose tax on wine
27 sold pursuant to section 23-1336, Idaho Code.
STATEMENT OF PURPOSE
RS 13271
The purpose of this legislation is to increase the tax on beer
from $4.65 per barrel to $7.44 per barrel and to increase the
excise tax on wine from $.45 per gallon to $.75 per gallon. The
revenues generated by such increases will be distributed to the
General Fund.
FISCAL IMPACT
For FY 2004 and each fiscal year thereafter, the increase on the
tax for beer is expected to generate $2,413,611 for the General
Fund and the increase on the excise tax for wine is expected to
generate $1,406,250 for the General Fund.
Contact
Name: Revenue and Taxation Committee
Phone: 332-1125
STATEMENT OF PURPOSE/FISCAL NOTE H 402