2003 Legislation
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HOUSE BILL NO. 402 – Beer/wine, tax increase

HOUSE BILL NO. 402

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Daily Data Tracking History



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

Bill Text


                                                                        
                                                                        
  ||||              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 / Fiscal Impact



                       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