2013 -- H 5559

=======

LC00625

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

____________

A N A C T

RELATING TO TAXATION - ALCOHOLIC BEVERAGES

     Introduced By: Representatives Morgan, Phillips, Costantino, Baldelli-Hunt, and Chippendale

     Date Introduced: February 14, 2013

     Referred To: House Finance

It is enacted by the General Assembly as follows:

1-1

     SECTION 1. Section 44-18-18 of the General Laws in Chapter 44-18 entitled "Sales and

1-2

Use Taxes - Liability and Computation" is hereby amended to read as follows:

1-3

     44-18-18. Sales tax imposed. [Effective October 1, 2012.] -- A tax is imposed upon

1-4

sales at retail in this state including charges for rentals of living quarters in hotels as defined in

1-5

section 42-63.1-2, rooming houses, or tourist camps, at the rate of six percent (6%) of the gross

1-6

receipts of the retailer from the sales or rental charges; provided, that the tax imposed on charges

1-7

for the rentals applies only to the first period of not exceeding thirty (30) consecutive calendar

1-8

days of each rental; provided, further, that for the period commencing July 1, 1990, the tax rate is

1-9

seven percent (7%). The tax is paid to the tax administrator by the retailer at the time and in the

1-10

manner provided. Excluded from this tax are those living quarters in hotels, rooming houses, or

1-11

tourist camps for which the occupant has a written lease for the living quarters which lease covers

1-12

a rental period of twelve (12) months or more and the gross receipts from the sale of intoxicating

1-13

beverages, exclusive of beer and malt beverages. In recognition of the work being performed by

1-14

the Streamlined Sales and Use Tax Governing Board, upon any federal law which requires

1-15

remote sellers to collect and remit taxes, effective the first (1st) day of the first (1st) state fiscal

1-16

quarter following the change, the rate imposed under section 44-18-18 shall be six and one-half

1-17

percent (6.5%).

1-18

     SECTION 2. Section 3-10-1 of the General Laws in Chapter 3-10 entitled "Taxation of

1-19

Beverages" is hereby amended to read as follows:

2-20

     3-10-1. Manufacturing tax rates -- Exemption of religious uses. -- (a) There shall be

2-21

assessed and levied by the tax administrator on all beverages manufactured, rectified, blended, or

2-22

reduced for sale in this state a tax of three dollars ($3.00) on every thirty-one (31) gallons, and a

2-23

tax at a like rate for any other quantity or fractional part. On any beverage manufactured,

2-24

rectified, blended, or reduced for sale in this state consisting in whole or in part of wine, whiskey,

2-25

rum, gin, brandy spirits, ethyl alcohol, or other strong liquors (as distinguished from beer or other

2-26

brewery products) the tax to be assessed and levied is as follows:

2-27

      (1) Still wines (whether fortified or not), sixty cents ($.60) per gallon;

2-28

      (2) Still wines (whether fortified or not) made entirely from fruit grown in this state,

2-29

thirty cents ($.30) per gallon;

2-30

      (3) Sparkling wines (whether fortified or not), seventy five cents ($.75) per gallon;

2-31

      (4) Whiskey, rum, gin, brandy spirits, cordials, and other beverages consisting in whole

2-32

or in part of alcohol which is the product of distillation, three dollars and seventy-five cents

2-33

($3.75) per gallon, except that whiskey, rum, gin, brandy spirits, cordials, and other beverages

2-34

consisting in whole or in part of alcohol which is the product of distillation but which contains

2-35

alcohol measuring thirty (30) proof or less, one dollar and ten cents ($1.10) per gallon;

2-36

      (5) Ethyl alcohol to be used for beverage purposes, seven dollars and fifty cents ($7.50)

2-37

per gallon; and

2-38

      (6) Ethyl alcohol to be used for nonbeverage purposes, eight cents ($.08) per gallon.

2-39

      (7) In addition to the taxes set forth in this section, the tax administrator shall assess and

2-40

levy an additional tax on intoxicating beverages, exclusive of beer and malt beverages,

2-41

manufactured, rectified, blended, or reduced for sale in this state in an amount sufficient to

2-42

generate annual tax revenue to the state in the amount of six million dollars ($6,000,000) for the

2-43

first fiscal year after enactment of this act. The amount of the first tax established by the tax

2-44

administrator in the first year after the enactment of this act shall remain in effect until further

2-45

action of the general assembly.

2-46

     (b) Sacramental wines are not subject to any tax if sold directly to a member of the clergy

2-47

for use by the purchaser, or his or her congregation for sacramental or other religious purposes.

2-48

      (c) A brewer who brews beer in this state which is actively and directly owned,

2-49

managed, and operated by an authorized legal entity which has owned, managed, and operated a

2-50

brewery in this state for at least twelve (12) consecutive months, shall receive a tax exemption on

2-51

the first one hundred thousand (100,000) barrels of beer that it produces and distributes in this

2-52

state in any calendar year. A barrel of beer is thirty one (31) gallons.

3-53

     SECTION 3. This act shall take effect upon passage.

=======

LC00625

=======

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TAXATION - ALCOHOLIC BEVERAGES

***

4-1

     This act would eliminate the sales tax on liquor and wine, exclusive of beer and malt

4-2

beverages. The act would increase the excise tax on liquor and wine in an amount sufficient to

4-3

generate six million dollars ($6,000,000) in annual revenue.

4-4

     This act would take effect upon passage.

=======

LC00625

=======