MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Finance

By: Senator(s) Bryan

Senate Bill 2825

(As Sent to Governor)

AN ACT TO AMEND SECTION 67-3-52, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT A PERSON HOLDING A PERMIT AUTHORIZING THE SALE OF BEER OR LIGHT WINE AT RETAIL WHOSE PERMIT HAS BEEN FORFEITED BECAUSE THE PERSON OBTAINED BEER OR LIGHT WINE FROM A SOURCE OUTSIDE THE STATE, SUCH PERSON SHALL BE PROHIBITED FROM APPLYING FOR A PERMIT FOR A PERIOD OF FIVE YEARS; TO PROVIDE THAT IF A PERSON HOLDING A PERMIT AUTHORIZING THE SALE OF BEER OR LIGHT WINE AT RETAIL OBTAINS BEER OR LIGHT WINE FROM ANY SOURCE OUTSIDE THE STATE, THE STATE TAX COMMISSION MAY ASSESS THE AMOUNT OF EXCISE TAX DUE ON THE UNLAWFULLY IMPORTED BEER OR LIGHT WINE, TOGETHER WITH A PENALTY; TO AMEND SECTION 67-3-19, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; TO AMEND SECTION 27-71-307, MISSISSIPPI CODE OF 1972, TO REVISE THE PENALTIES FOR WHOLESALERS AND DISTRIBUTORS OF BEER OR LIGHT WINE WHO IMPORT BEER OR LIGHT WINE FROM A SOURCE NOT AUTHORIZED BY THE STATE TAX COMMISSION TO SELL BEER OR LIGHT WINE IN MISSISSIPPI FROM APPLYING FOR A PERIOD OF FIVE YEARS; AND FOR RELATED PURPOSES. 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 67-3-52, Mississippi Code of 1972, is amended as follows:

67-3-52. It shall be unlawful for any person holding a permit authorizing the sale of beer or light wine at retail to obtain such beer or light wine from any source outside of the State of Mississippi. Any person who violates the provisions of this section, upon conviction thereof, shall be punished by a fine of not more than One Thousand Dollars ($1,000.00) or by imprisonment in the county jail for not more than six (6) months, or by both such fine and imprisonment, in the discretion of the court. Any person convicted of violating this section, or any rules or regulations promulgated by the commissioner with regard to the unlawful acts described in this section, shall forfeit his permit. Any person whose permit has been forfeited pursuant to this section shall not be eligible for a permit issued by the commissioner for a period of five (5) years after the date of such forfeiture. In addition, no permit shall be issued for the same location, for which an offender has forfeited a permit pursuant to this section, to a spouse, offspring or sibling of the offender when to do so would circumvent the purposes of this section. The commissioner may assess a retailer who violates this section the amount of excise taxes due on the unlawfully imported beer or light wine, together with a penalty in the amount of four (4) times the state excise taxes due or One Hundred Dollars ($100.00) per case, whichever is greater.

This section shall stand repealed from and after July 1, 2000.

SECTION 2. Section 67-3-19, Mississippi Code of 1972, is amended as follows:

67-3-19. Where application is made for a permit to engage in the business of a retailer of light wine or beer, the applicant shall show in his application that he possesses the following qualifications:

(a) Applicant must be a person at least twenty-one (21) years of age, of good moral character and a resident of the State of Mississippi.

(b) Applicant shall not have been convicted of a felony, or of pandering or of keeping or maintaining a house of prostitution, or have been convicted within two (2) years of the date of his application of any violation of the laws of this state or the laws of the United States relating to alcoholic liquor.

(c) Applicant shall not have had revoked, except for a violation of Section 67-3-52, within two (2) years next preceding his application, any license or permit issued to him pursuant to the laws of this state, or any other state, to sell alcoholic liquor of any kind.

(d) Applicant shall be the owner of the premises for which the permit is sought or the holder of an existing lease thereon.

(e) Applicant shall not be residentially domiciled with any person whose permit has been revoked for cause, except for a violation of Section 67-3-52, within two (2) years next preceding the date of the present application for a permit.

(f) The applicant has not had any license or permit to sell beer or light wine at retail revoked, within five (5) years next preceding his application, due to a violation of Section 67-3-52.

(g) Applicant shall not employ any person whose permit has been revoked when such person owned or operated the business on the premises for which a permit is sought or allow such person to have any financial interest in the business of the applicant, until such person is qualified to obtain a permit in his own name.

(h) The applicant is not indebted to the State of Mississippi for any taxes.

(i) If applicant is a partnership, all members of the partnership must be qualified to obtain a permit. Each member of the partnership must be a resident of the State of Mississippi.

(j) If applicant is a corporation, all officers and directors thereof, and any stockholder owning more than five percent (5%) of the stock of such corporation, and the person or persons who shall conduct and manage the licensed premises for the corporation shall possess all the qualifications required herein for any individual permittee. However, the requirements as to residence shall not apply to officers, directors, and stockholders of such corporation, although such requirements shall apply to any officer, director, or stockholder who is also the manager of the licensed premises or who is engaged or employed at the licensed premises. The designated manager of the licensed premises must be a resident of the State of Mississippi.

Any misstatement or concealment of fact in an application shall be ground for denial of the application or for revocation of the permit issued thereon.

The commissioner may refuse to issue a permit to an applicant for a place that is frequented by known criminals, prostitutes, or other law violators or troublemakers who disturb the peace and quietude of the community and frequently require the assistance of peace officers to apprehend such law violators or to restore order. The burden of proof of establishing the foregoing shall rest upon the commissioner.

SECTION 3. Section 27-71-307, Mississippi Code of 1972, is amended as follows:

[Through June 30, 2000, this section shall read as follows:]

27-71-307. (1) (a) In addition to the specific tax imposed in Section 27-71-303, there is hereby imposed, levied, assessed and shall be collected, as hereinafter provided, an excise or privilege tax upon each person engaged or continuing in the business of wholesaler or distributor of light wines or beer equivalent to Forty-two and Sixty-eight One-hundredths Cents (42.684) per gallon upon all light wines and beer acquired for sale or distribution in this state; provided, however, that from and after June 1, 1985, and until the date on which the legal age for consumption of light wine and beer in this state increases from the age of eighteen (18) to the age of twenty-one (21), such tax shall be equivalent to Forty-six and Ninety-five One-hundredths Cents (46.954) per gallon. Such tax is hereby imposed as an additional tax for the privilege of engaging or continuing in such business.

(b) The excise tax imposed upon the sale or distribution of beer or light wine into Mississippi shall be paid by the wholesaler or distributor to the State Tax Commission monthly on or before the fifteenth day of the month following the month in which the beer or light wine was received in this state. Monthly report forms shall be furnished by the commissioner to the wholesalers or distributors.

(c) Provided that persons operating a railroad dining car, club car or other car in interstate commerce upon which light wines or beer may be sold and who are licensed under the provisions of Section 67-3-27 and any other law relating to the sale of such beverages shall keep such records of the sales of such light wines and beer in this state as the commissioner shall prescribe and shall submit monthly reports of such sales to the commissioner within fifteen (15) days after the end of each month on a form prescribed therefor by the commissioner, and shall pay the tax due under the provisions of this section at the time such reports are filed.

No official crowns, lids, labels or stamps with the word "MISSISSIPPI" or "MS" imprinted thereon or any other evidence of tax payment is required by this section, or may be required under rule or regulation promulgated by the commissioner, to be affixed on or to any part of a beer, light wine or malt cooler bottle, can or other light wine or malt cooler container. For purposes of this section, malt cooler products shall be defined as a flavored malt beverage made from a base of malt beverage and flavored with fruit juices, aromatics and essences of other flavoring in quantities and proportions such that the resulting product possesses a character and flavor distinctive from the base malt beverage and distinguishable from other malt beverages.

(2) A licensed wholesaler or distributor of beer or light wine may not import beer or light wine from any source other than a brewer or importer authorized by the commissioner to sell such beer or light wine in Mississippi. Any person who violates the provisions of this subsection, upon conviction thereof, shall be punished by a fine of not more than One Thousand Dollars ($1,000.00) or by imprisonment in the county jail for not more than six (6) months, or by both such fine and imprisonment, in the discretion of the court and shall be subject to license forfeiture following an appropriate hearing before the State Tax Commission.  * * *

(3) The wholesaler or distributor shall be allowed credit for tax paid on beer or light wine which is no longer marketable and which is destroyed by same when such destruction is witnessed by an agent of the commissioner and when the amount of the excise tax exceeds One Hundred Dollars ($100.00). No other loss will be allowed.

(4) All manufacturers, brewers and importers of beer or light wine shall file monthly reports as prescribed by the commissioner listing sales to each wholesaler or distributor by date, invoice number, quantity and container size, and any other information deemed necessary.

(5) All administrative provisions of the Mississippi Sales Tax Law, including those which fix damages, penalties and interest for nonpayment of taxes and for noncompliance with the provisions of such chapter, and all other requirements and duties imposed upon taxpayers, shall apply to all persons liable for taxes under the provisions of this chapter, and the commissioner shall exercise all the power and authority and perform all the duties with respect to taxpayers under this chapter as are provided in the sales tax law except where there is conflict, then the provisions of this chapter shall control.

[From and after July 1, 2000, this section shall read as follows:]

27-71-307. In addition to the specific tax imposed in Section 27-71-303, there is hereby imposed, levied, assessed and shall be collected, as hereinafter provided, an excise or privilege tax upon each person engaged or continuing in the business of wholesaler or distributor of light wines or beer equivalent to Forty-two and Sixty-eight One-hundredths Cents (42.684) per gallon upon all light wines and beer acquired for sale or distribution in this state; provided, however, that from and after June 1, 1985, and until the date on which the legal age for consumption of light wine and beer in this state increases from the age of eighteen (18) to the age of twenty-one (21), such tax shall be equivalent to Forty-six and Ninety-five One-hundredths Cents (46.954) per gallon. Such tax is hereby imposed as an additional tax for the privilege of engaging or continuing in such business.

The excise tax imposed upon the sale or distribution of beer or light wine into Mississippi shall be paid by the wholesaler or distributor to the State Tax Commission monthly on or before the fifteenth day of the month following the month in which the beer or light wine was received in this state. Monthly report forms shall be furnished by the commissioner to the wholesalers or distributors.

Provided that persons operating a railroad dining car, club car or other car in interstate commerce upon which light wines or beer may be sold and who are licensed under the provisions of Section 67-3-27 and any other law relating to the sale of such beverages shall keep such records of the sales of such light wines and beer in this state as the commissioner shall prescribe and shall submit monthly reports of such sales to the commissioner within fifteen (15) days after the end of each month on a form prescribed therefor by the commissioner, and shall pay the tax due under the provisions of this section at the time such reports are filed.

All beer sold, received or stored in this state shall have imprinted by the manufacturer on each bottle, can or other container (including kegs, barrels or such large containers), the word "MISSISSIPPI" or "MS." The word "MISSISSIPPI" or "MS" may be printed, etched, engraved, embossed, ink jet sprayed or marked thereon by any permanent method that makes the word plain and conspicuous. If the bottle is covered by foil or any other material, the word "MISSISSIPPI" or "MS" shall be printed on the label, or elsewhere on the bottle, can or other container, in a manner to make it plain and conspicuous. The design for each type of crown, lid, label and the Mississippi identifying mark shall be submitted first to the commissioner for his approval before used. No official crowns, lids or stamps with the word "MISSISSIPPI" or "MS" imprinted thereon or any other evidence of tax payment shall be required to be affixed on or to any part of a light wine or malt cooler bottle, can or other light wine or malt cooler container. For purposes of this section, malt cooler products shall be defined as a flavored malt beverage made from a base of malt beverage and flavored with fruit juices, aromatics and essences of other flavoring in quantities and proportions such that the resulting product possesses a character and flavor distinctive from the base malt beverage and distinguishable from other malt beverages.

A licensed wholesaler or distributor of beer or light wine may not import beer or light wine from any source other than a brewer or importer authorized by the commissioner to sell such beer or light wine in Mississippi.

The wholesaler or distributor shall be allowed credit for tax paid on beer or light wine which is no longer marketable and which is destroyed by same when such destruction is witnessed by an agent of the commissioner and when the amount of the excise tax exceeds One Hundred Dollars ($100.00). No other loss will be allowed.

All manufacturers, brewers and importers of beer or light wine shall file monthly reports as prescribed by the commissioner listing sales to each wholesaler or distributor by date, invoice number, quantity and container size, and any other information deemed necessary.

All administrative provisions of the Mississippi Sales Tax Law, including those which fix damages, penalties and interest for nonpayment of taxes and for noncompliance with the provisions of such chapter, and all other requirements and duties imposed upon taxpayers, shall apply to all persons liable for taxes under the provisions of this chapter, and the commissioner shall exercise all the power and authority and perform all the duties with respect to taxpayers under this chapter as are provided in the sales tax law except where there is conflict, then the provisions of this chapter shall control.

SECTION 4. This act shall take effect and be in force from and after July 1, 1998.