MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Finance

By: Senator(s) Bean

AN ACT TO CREATE A NEW CODE SECTION TO BE CODIFIED AS SECTION 41-59-75, MISSISSIPPI CODE OF 1972, TO CREATE THE MISSISSIPPI TRAUMA CARE SYSTEMS FUND; TO AMEND SECTIONS 27-71-7 AND 27-71-307, MISSISSIPPI CODE OF 1972, TO INCREASE THE EXCISE TAX ON ALCOHOLIC BEVERAGES, LIGHT WINES AND BEER AND TO REQUIRE THE REVENUE FROM SUCH INCREASE TO BE DEPOSITED INTO THE MISSISSIPPI TRAUMA CARE SYSTEMS FUND; AND FOR RELATED PURPOSES. 

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

SECTION 1. The following provision shall be codified as Section 41-59-75, Mississippi Code of 1972:

41-59-75. (1) There is hereby created in the State Treasury a special fund to be known as the Mississippi Trauma Care Systems Fund into which shall be deposited the revenue specified to be deposited into the fund pursuant to Sections 27-71-7(1)(b) and 27-71-307(1)(a)(ii). Money in the fund shall be used for the purpose of providing funding to the State Department of Health for the administration and implementation of a comprehensive state trauma care plan, for distribution by the department to designated trauma care regions for regional administration, for the department's trauma specific public information and education plan, and to provide hospital and physician indigent trauma care block grant funding to trauma centers designated by the department. All designated trauma care hospitals are eligible to contract with the department for these funds.

(2) Money in the fund shall be expended upon appropriation by the Legislature. Unexpended amounts remaining in the fund at the end of the fiscal year shall not lapse into the State General Fund, and any interest earned on amounts in the fund shall be deposited to the credit of the fund.

SECTION 2. Section 27-71-7, Mississippi Code of 1972, is amended as follows:

27-71-7. (1) (a) There is hereby levied and assessed an excise tax upon each case of alcoholic beverages sold by the commission to be collected from each retail licensee at the time of sale in accordance with the following schedule:

(i) Distilled spirits $2.50 per gallon

(ii) Sparkling wine and champagne. $1.00 per gallon

(iii) Other wines, including native

wines $ .35 per gallon

(b) There is hereby levied and assessed an additional excise tax upon each case of distilled spirits and sparkling wine, champagne and other wines, including native wines, sold by the commission in the amount of Fifty Cents (504) per gallon. Revenue collected from the additional tax levied pursuant to this section shall be deposited into the Mississippi Trauma Care Systems Fund created in Section 41-59-75.

(2) (a) In addition to the tax levied by subsection (1) of this section, and in addition to any other markup collected, the Alcoholic Beverage Control Division shall collect a markup of three percent (3%) on all alcoholic beverages, as defined in Section 67-1-5, Mississippi Code of 1972, which are sold by the division. The proceeds of the markup shall be collected by the division from each purchaser at the time of purchase.

(b) Until June 30, 1987, the revenue derived from this three percent (3%) markup shall be deposited by the division in the State Treasury to the credit of the "Alcoholism Treatment and Rehabilitation Fund," a special fund which is hereby created in the State Treasury, and shall be used by the Division of Alcohol and Drug Abuse of the State Department of Mental Health and public or private centers or organizations solely for funding of treatment and rehabilitation programs for alcoholics and alcohol abusers which are sponsored by the division or public or private centers or organizations in such amounts as the Legislature may appropriate to the division for use by the division or public or private centers or organizations for such programs. Any tax revenue in the fund which is not encumbered at the end of the fiscal year shall lapse to the General Fund. It is the intent of the Legislature that the State Department of Mental Health shall continue to seek funds from other sources and shall use the funds appropriated for the purposes of this section and Section 27-71-29 to match all federal funds which may be available for alcoholism treatment and rehabilitation.

From and after July 1, 1987, the revenue derived from this three percent (3%) markup shall be deposited by the division in the State Treasury to the credit of the "Mental Health Programs Fund," a special fund which is hereby created in the State Treasury and shall be used by the State Department of Mental Health for the service programs of the department. Any revenue in the "Alcoholism Treatment and Rehabilitation Fund" which is not encumbered at the end of Fiscal Year 1987 shall be deposited to the credit of the "Mental Health Programs Fund."

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

27-71-307. (1) (a) (i) 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.

(ii) There is hereby imposed, levied, assessed and shall be collected, as hereinafter provided, an additional excise or privilege tax upon each person engaged or continuing in the business of a wholesaler or distributor of light wines or beer in the amount of Fifty Cents (504) per gallon upon all light wines and beer acquired for sale or distribution in this state. Revenue collected from the additional tax levied pursuant to this section shall be deposited into the Mississippi Trauma Care Systems Fund created in Section 41-59-75.

(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.

27-71-307. (1) (a) (i) 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.

(ii) There is hereby imposed, levied, assessed and shall be collected, as hereinafter provided, an additional excise or privilege tax upon each person engaged or continuing in the business of a wholesaler or distributor of light wines or beer in the amount of Fifty Cents (504) per gallon upon all light wines and beer acquired for sale or distribution in this state. Revenue collected from the additional tax levied pursuant to this section shall be deposited into the Mississippi Trauma Care Systems Fund created in Section 41-59-75.

(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.

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.

(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.

(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.

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