MISSISSIPPI LEGISLATURE
2014 Regular Session
To: Ways and Means
By: Representative Evans (91st)
AN ACT TO AMEND SECTIONS 27-71-7 AND 27-71-11, MISSISSIPPI CODE OF 1972, TO INCREASE THE EXCISE TAX AND MARKUP ON ALCOHOLIC BEVERAGES; TO AMEND SECTION 27-71-307, MISSISSIPPI CODE OF 1972, TO INCREASE THE EXCISE TAX ON LIGHT WINE AND BEER; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-71-7, Mississippi Code of 1972, is amended as follows:
27-71-7. (1) There is
hereby levied and assessed an excise tax upon each case of alcoholic beverages
sold by the * * * department
to be collected from each retail licensee at the time of sale in accordance
with the following schedule:
(a) Distilled
spirits....... $ * * *3.75
per gallon
(b) Sparkling wine and
champagne............ $ * * *1.001.50 per gallon
(c) Other wines, including native
wines.....................$ * * *0.525
per gallon
(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 * * * four and one-half percent (4.5%) 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 * * * the markup provided for in
paragraph (a) of this subsection 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 2. Section 27-71-11, Mississippi Code of 1972, is amended as follows:
27-71-11. The * * *
department shall
from time to time by resolution request the State Bond Commission to provide
sufficient funds required to maintain an adequate alcoholic beverage
inventory. Said funds shall be provided under the provisions of Chapter 557,
Laws of 1966.
The * * * department shall add to the
cost of all alcoholic beverages a markup of * * * forty-one
and one-quarter percent (41.25%), inclusive of the * * * four and one-half percent
(4.5%) markup imposed by Section 27-71-7(2).
The * * * department shall sell
alcoholic beverages at uniform prices throughout the state.
SECTION 3. Section 27-71-307, Mississippi Code of 1972, is amended 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 * * *
Sixty-four and Two One-hundredths Cents (64.02¢)
per gallon upon all light wines and beer acquired for sale or distribution in
this state. Such excise or privilege tax is also imposed at the same rate upon
each gallon of light wine or beer manufactured by brewpubs, each of which shall
accurately and reliably measure the quantity of light wine and beer produced by
using a measuring device such as a meter or gauge glass or any other suitable
method approved by the commissioner. Such tax is hereby imposed as an
additional tax for the privilege of engaging or continuing in business.
(b) The excise tax
imposed in this section shall be paid to the * * * Department of Revenue
monthly on or before the fifteenth day of the month following the month in
which the beer or light wine was manufactured or received in this state.
Monthly report forms shall be furnished by the commissioner to the wholesalers,
distributors and brewpubs.
(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 * * * Department of Revenue.
(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.
A brewpub shall be allowed credit for light wine or beer which has passed through the meter, gauge glass or other approved measuring device and which has been soured or damaged. The brewpub shall record the removal of sour or damaged light wine or beer and may take credit after the destruction is witnessed by an agent of the commissioner and when the amount of excise tax exceeds Twenty-five Dollars ($25.00). No other loss shall 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, 2014.