MISSISSIPPI LEGISLATURE
2022 Regular Session
To: Ways and Means
By: Representatives Lamar, Williamson, Felsher
AN ACT TO AMEND SECTION 67-1-41, MISSISSIPPI CODE OF 1972, TO REMOVE THE DEPARTMENT OF REVENUE FROM BEING A WHOLESALE DISTRIBUTOR OF ALCOHOLIC BEVERAGES WITHIN THIS STATE; TO CREATE A NEW SECTION TO BE CODIFIED AS 67-1-42, MISSISSIPPI CODE OF 1972, TO AUTHORIZE A HOLDER OF A WHOLESALER'S PERMIT TO DISTRIBUTE ALCOHOLIC BEVERAGES THROUGHOUT THIS STATE TO PROPERLY PERMITTED RETAILERS FOR RESALE SUBJECT TO THE PROVISIONS OF THE LOCAL OPTION ALCOHOLIC BEVERAGE CONTROL LAW; TO PROVIDE FOR THE ISSUANCE OF A WHOLESALER'S PERMIT; TO REQUIRE THE HOLDER OF A WHOLESALER'S PERMIT TO FILE REPORTS WITH THE DEPARTMENT OF REVENUE COVERING SALES OF ALCOHOLIC BEVERAGES AND KEEP CERTAIN RECORDS; TO PROVIDE FOR THE ANNUAL RENEWAL OF A WHOLESALER'S PERMIT; TO AMEND SECTIONS 67-1-37, 67-1-43, 67-1-45, 67-1-47, 67-1-49 AND 67-1-51, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PROVISIONS OF THIS ACT; TO AMEND SECTION 27-71-5, MISSISSIPPI CODE OF 1972, TO LEVY A PRIVILEGE TAX ON HOLDERS OF WHOLESALER'S PERMITS; TO AMEND SECTION 27-71-7, MISSISSIPPI CODE OF 1972, TO LEVY A TAX UPON THE SALE OF ALCOHOLIC BEVERAGES BY A WHOLESALER; TO AMEND SECTIONS 27-71-9, 27-71-11, 27-71-13, 27-71-15, 27-71-17, 27-71-21, 27-71-25, 27-71-29 AND 67-5-13, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PROVISIONS OF THIS ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 67-1-41, Mississippi Code of 1972, is amended as follows:
67-1-41. (1) * * *
No person who is granted the right
to sell, distribute or receive alcoholic beverages at retail shall purchase any
alcoholic beverages from any source other than * * * an authorized wholesaler except
as authorized in subsections (4), (9) and (12) of this section. * * *
An authorized wholesaler may sell * * * alcoholic beverages to authorized permittees
within the state * * * and to retail distributors
operating within any military post * * *,
keeping a correct and accurate record of all such transactions * * *.
(2) No person for the purpose of sale shall manufacture, distill, brew, sell, possess, export, transport, distribute, warehouse, store, solicit, take orders for, bottle, rectify, blend, treat, mix or process any alcoholic beverage except in accordance with authority granted under this chapter, or as otherwise provided by law for native wines or native spirits.
(3) No alcoholic beverage intended for sale or resale shall be imported, shipped or brought into this state for delivery to any person other than for delivery to a licensed wholesaler or as otherwise provided in this chapter, or as otherwise provided by law for native wines or native spirits.
(4) The department may promulgate rules and regulations which authorize on-premises retailers to purchase limited amounts of alcoholic beverages from package retailers and for package retailers to purchase limited amounts of alcoholic beverages from other package retailers. The department shall develop and provide forms to be completed by the on-premises retailers and the package retailers verifying the transaction. The completed forms shall be forwarded to the department within a period of time prescribed by the department.
(5) The department may promulgate rules which authorize the holder of a package retailer's permit to permit individual retail purchasers of packages of alcoholic beverages to return, for exchange, credit or refund, limited amounts of original sealed and unopened packages of alcoholic beverages purchased by the individual from the package retailer.
(6) The department shall maintain all forms to be completed by applicants necessary for licensure by the department at all district offices of the department.
(7) The department may promulgate rules which authorize the manufacturer of an alcoholic beverage or wine to import, transport and furnish or give a sample of alcoholic beverages or wines to the holders of package retailer's permits, on-premises retailer's permits, native wine or native spirit retailer's permits and temporary retailer's permits who have not previously purchased the brand of that manufacturer from the department. For each holder of the designated permits, the manufacturer may furnish not more than five hundred (500) milliliters of any brand of alcoholic beverage and not more than three (3) liters of any brand of wine.
(8) The department may promulgate rules disallowing open product sampling of alcoholic beverages or wines by the holders of package retailer's permits and permitting open product sampling of alcoholic beverages by the holders of on-premises retailer's permits. Permitted sample products shall be plainly identified "sample" and the actual sampling must occur in the presence of the manufacturer's representatives during the legal operating hours of on-premises retailers.
(9) The department may promulgate
rules and regulations that authorize the holder of a research permit to import and
purchase limited amounts of alcoholic beverages from importers, wineries * * *
, distillers of alcoholic
beverages * * *
and from * * *
authorized wholesalers. The department shall develop and provide forms to
be completed by the research permittee verifying each transaction. The completed
forms shall be forwarded to the department within a period of time prescribed by
the department. The records and inventory of alcoholic beverages shall be open
to inspection at any time by the Director of the Alcoholic Beverage Control Division
or any duly authorized agent.
(10) The department may promulgate rules facilitating a retailer's on-site pickup of alcoholic beverages sold by the department or as authorized by the department, including, but not limited to, native wines and native spirits, so that those alcoholic beverages may be delivered to the retailer at the manufacturer's location instead of via shipment from the department's warehouse.
(11) [Through June 30, 2023] This section shall not apply to alcoholic beverages authorized to be sold by the holder of a distillery retailer's permit or a festival wine permit.
(11) [From and after July 1, 2023] This section shall not apply to alcoholic beverages authorized to be sold by the holder of a distillery retailer's permit.
(12) (a) An individual resident of this state who is at least twenty-one (21) years of age may purchase wine from a winery and have the purchase shipped into this state so long as it is shipped to a package retailer permittee in Mississippi; however, the permittee shall pay to the department all taxes, fees and surcharges on the wine that are imposed upon the sale of wine shipped by the department. No credit shall be provided to the permittee for any taxes paid to another state as a result of the transaction. Package retailers may charge a service fee for receiving and handling shipments from wineries on behalf of the purchasers. The department shall develop and provide forms to be completed by the package retailer permittees verifying the transaction. The completed forms shall be forwarded to the department within a period of time prescribed by the department.
(b) The purchaser of wine that is to be shipped to a package retailer's store shall be required to get the prior approval of the package retailer before any wine is shipped to the package retailer. A purchaser is limited to no more than ten (10) cases of wine per year to be shipped to a package retailer. A package retailer shall notify a purchaser of wine within two (2) days after receiving the shipment of wine. If the purchaser of the wine does not pick up or take the wine from the package retailer within thirty (30) days after being notified by the package retailer, the package retailer may sell the wine as part of his inventory.
(c) Shipments of wine into this state under this section shall be made by a duly licensed carrier. It shall be the duty of every common or contract carrier, and of every firm or corporation that shall bring, carry or transport wine from outside the state for delivery inside the state to package retailer permittees on behalf of consumers, to prepare and file with the department, on a schedule as determined by the department, of known wine shipments containing the name of the common or contract carrier, firm or corporation making the report, the period of time covered by said report, the name and permit number of the winery, the name and permit number of the package retailer permittee receiving such wine, the weight of the package delivered to each package retailer permittee, a unique tracking number, and the date of delivery. Reports received by the department shall be made available by the department to the public via the Mississippi Public Records Act process in the same manner as other state alcohol filings.
Upon the department's request, any records supporting the report shall be made available to the department within a reasonable time after the department makes a written request for such records. Any records containing information relating to such reports shall be kept and preserved for a period of two (2) years, unless their destruction sooner is authorized, in writing, by the department, and shall be open and available to inspection by the department upon the department's written request. Reports shall also be made available to any law enforcement or regulatory body in the state in which the railroad company, express company, common or contract carrier making the report resides or does business.
Any common or contract carrier that willfully fails to make reports, as provided by this section or any of the rules and regulations of the department for the administration and enforcement of this section, is subject to a notification of violation. In the case of a continuing failure to make reports, the common or contract carrier is subject to possible license suspension and revocation at the department's discretion.
(d) A winery that ships wine under this section shall be deemed to have consented to the jurisdiction of the courts of this state, of the department, of any other state agency regarding the enforcement of this section, and of any related law, rules or regulations.
(e) Any person who makes, participates in, transports, imports or receives a shipment in violation of this section is guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of One Thousand Dollars ($1,000.00) or imprisonment in the county jail for not more than six (6) months, or both. Each shipment shall constitute a separate offense.
(13) If any provision of this chapter, or its application to any person or circumstance, is determined by a court to be invalid or unconstitutional, the remaining provisions shall be construed in accordance with the intent of the Legislature to further limit rather than expand commerce in alcoholic beverages to protect the health, safety, and welfare of the state's residents, and to enhance strict regulatory control over taxation, distribution and sale of alcoholic beverages through the three-tier regulatory system imposed by this chapter upon all alcoholic beverages to curb relationships and practices calculated to stimulate sales and impair the state's policy favoring trade stability and the promotion of temperance.
SECTION 2. The following shall be codified as Section 67-1-42, Mississippi Code of 1972:
67-1-42. (1) A retailer shall purchase all alcoholic beverages from an authorized wholesaler. Except as otherwise authorized, it shall be unlawful for any retailer to possess for purpose of sale, to sell, or to offer to sell any alcoholic beverages which were not purchased from a wholesaler in this state who has a permit to sell and/or distribute such alcoholic beverages.
(2) It shall be unlawful for any wholesaler to possess for purpose of sale, to sell or to offer to sell any alcoholic beverages which were not purchased from a manufacturer authorized to sell alcoholic beverages in this state.
(3) Except as otherwise authorized, sales by wholesalers or manufacturers to persons who do not hold a permit are unlawful; and any wholesaler or manufacturer making such sales, or who sells any alcoholic beverages on which the tax provided by law has not been paid, shall, in addition to any other fines, penalties and forfeitures, be subject to a penalty of One Hundred Dollars ($100.00) for each sale.
(4) It shall be the duty of every wholesaler of alcoholic beverages permitted under this chapter to file with the department, on or before the fifteenth day of each month, a report covering all sales of such alcoholic beverages during the preceding month. Such report shall show the names and post-office addresses for all persons to whom such alcoholic beverages have been sold or delivered and the quantities and invoice prices of the alcoholic beverages sold or delivered.
It shall be the duty of each retail dealer in such alcoholic beverages to procure from the wholesaler from whom such alcoholic beverages are purchased or acquired, invoices showing the quantity purchased or acquired, and the date of each delivery thereof. Such invoices shall be preserved by the retailer and shall be open for inspection by the department for a period of three (3) years.
(5) The wholesaler shall be allowed credit for tax paid on alcoholic beverages which are no longer marketable and which are destroyed by same when such destruction is witnessed by an agent of the department and when the amount of the excise tax exceeds One Hundred Dollars ($100.00). No other loss will be allowed.
(6) If any person shall willfully evade the payment of any tax levied or imposed under this article, he shall be guilty of a felony, and, upon conviction, shall be punished by a fine of not more than One Thousand Dollars ($1,000.00) or by imprisonment in the State Penitentiary for not less than one (1) year, nor more than ten (10) years, or by both such fine and imprisonment.
(7) It shall be unlawful for any person to transport from any point outside of this state to any point within this state, any alcoholic beverages except for delivery to a licensed wholesaler in this state; and except by common carrier. The commissioner may, however, upon application of a licensed wholesaler in this state, and under rules and regulations duly promulgated by him, issue a permit for the transportation by a licensed wholesaler of alcoholic beverages in trucks owned by such licensee, from without the state to the place of business of such licensee within the state, for distribution by said licensee. Such permit shall be granted for a specified period, not to exceed one (1) year.
(8) A wholesaler shall sell and deliver alcoholic beverages at uniform prices throughout the state; however, a wholesaler may provide volume or bulk price discounts provided that such discounts are made available to and provided to all retailers.
(9) No alcoholic beverages shall be delivered to a retailer other than alcoholic beverages that have been stored or warehoused for no less than forty-eight (48) hours at a premise in this state owned, rented or leased by a wholesaler.
(10) (a) No wholesaler may sell and no retailer may purchase alcoholic beverages except for cash or on terms requiring payment by the retailer in accordance with paragraph (b) of this subsection (10). A wholesaler who accepts a check or draft as payment from a retailer for the purchase of alcoholic beverages must deposit the check or draft in the bank for payment or present the check or draft for payment within five (5) business days after it is received.
(b) On purchases made from the first through the fifteenth day of a month, payment must be made on or before the twenty-fifth day of that month. On purchases made on the sixteenth day through the last day of a month, payment must be made on or before the tenth day of the following month. An account is not delinquent if payment is received by the wholesaler not later than the fourth business day after the date payment is due under this paragraph (b).
(c) Each delivery of alcoholic beverages shall be accompanied by an invoice giving the date of purchase. If a retailer becomes delinquent in the payment of an account for alcoholic beverages, the wholesaler immediately shall report that fact in writing, including by electronic mail or facsimile transmission, to the department. A wholesaler may not sell any alcoholic beverages to a retailer who is delinquent until the delinquent account is paid in full and cleared from the records of the department, provided that sales to delinquent retailers can be made on a cash on delivery basis. An account becomes delinquent if it is not paid when it is required to be paid under paragraph (b) of this subsection (10).
(d) The department may not accept the voluntary cancellation or suspension of a permit or allow a permit to be renewed or transferred if the permit holder is delinquent in the payment of an account for alcoholic beverages under this subsection (10). A person whose permit is canceled by the department or whose permit has expired is not eligible to hold any other permit or license under this chapter until the person has cured any delinquency of the person under this section.
(e) It shall be unlawful for a wholesaler to accept a postdated check, a note or memorandum, or participate in a manner to assist a retailer in the violation of this subsection (10).
(f) Nothing in this subsection (10) shall require a wholesaler to makes sales to a retailer on a credit basis. A wholesaler may at any time require that sales be made on a cash on delivery basis.
SECTION 3. Section 67-1-37, Mississippi Code of 1972, is amended as follows:
67-1-37. The Department of Revenue, under its duties and powers with respect to the Alcoholic Beverage Control Division therein, shall have the following powers, functions and duties:
(a) To issue or refuse to issue any permit provided for by this chapter, or to extend the permit or remit in whole or any part of the permit monies when the permit cannot be used due to a natural disaster or act of God.
(b) To revoke, suspend or cancel, for violation of or noncompliance with the provisions of this chapter, or the law governing the production and sale of native wines or native spirits, or any lawful rules and regulations of the department issued hereunder, or for other sufficient cause, any permit issued by it under the provisions of this chapter. The department shall also be authorized to suspend the permit of any permit holder for being out of compliance with an order for support, as defined in Section 93-11-153. The procedure for suspension of a permit for being out of compliance with an order for support, and the procedure for the reissuance or reinstatement of a permit suspended for that purpose, and the payment of any fees for the reissuance or reinstatement of a permit suspended for that purpose, shall be governed by Section 93-11-157 or Section 93-11-163, as the case may be. If there is any conflict between any provision of Section 93-11-157 or Section 93-11-163 and any provision of this chapter, the provisions of Section 93-11-157 or Section 93-11-163, as the case may be, shall control.
(c) To prescribe forms of permits and applications for permits and of all reports which it deems necessary in administering this chapter.
(d) To fix standards, not in conflict with those prescribed by any law of this state or of the United States, to secure the use of proper ingredients and methods of manufacture of alcoholic beverages.
(e) To issue rules regulating the advertising of alcoholic beverages in the state in any class of media and permitting advertising of the retail price of alcoholic beverages.
(f) To issue reasonable rules and regulations, not inconsistent with the federal laws or regulations, requiring informative labeling of all alcoholic beverages offered for sale within this state and providing for the standards of fill and shapes of retail containers of alcoholic beverages; however, such containers shall not contain less than fifty (50) milliliters by liquid measure.
(g) Subject to the provisions of subsection (3) of Section 67-1-51, to issue rules and regulations governing the issuance of retail permits for premises located near or around schools, colleges, universities, churches and other public institutions, and specifying the distances therefrom within which no such permit shall be issued. The Alcoholic Beverage Control Division shall not issue a package retailer's or on-premises retailer's permit for the sale or consumption of alcoholic beverages in or on the campus of any public school, community or junior college, college or university.
(h) To adopt and promulgate, repeal and amend, such rules, regulations, standards, requirements and orders, not inconsistent with this chapter or any law of this state or of the United States, as it deems necessary to control the manufacture, importation, transportation, distribution, delivery and sale of alcoholic liquor, whether intended for beverage or nonbeverage use in a manner not inconsistent with the provisions of this chapter or any other statute, including the native wine and native spirit laws.
(i) To call upon other administrative departments of the state, county and municipal governments, county and city police departments and upon prosecuting officers for such information and assistance as it may deem necessary in the performance of its duties.
(j) To prepare and submit to the Governor during the month of January of each year a detailed report of its official acts during the preceding fiscal year ending June 30, including such recommendations as it may see fit to make, and to transmit a like report to each member of the Legislature of this state upon the convening thereof at its next regular session.
(k) To inspect, or cause to be inspected, any premises where alcoholic liquors intended for sale are manufactured, stored, distributed or sold, and to examine or cause to be examined all books and records pertaining to the business conducted therein.
(l) To investigate the administration of laws in relation to alcoholic liquors in this and other states and any foreign countries, and to recommend from time to time to the Governor and through him to the Legislature of this state such amendments to this chapter, if any, as it may think desirable.
(m) To designate hours and days when alcoholic beverages may be sold in different localities in the state which permit such sale.
(n) To assign employees to posts of duty at locations where they will be most beneficial for the control of alcoholic beverages and to take any other action concerning persons employed under this chapter as authorized by law and taken in accordance with the rules, regulations and procedures of the State Personnel Board.
(o) To enforce the provisions made unlawful by Chapter 3, Title 67 and Section 97-5-49.
(p) To delegate its authority under this chapter to the Alcoholic Beverage Control Division, its director or any other officer or employee of the department that it deems appropriate.
(q) To prescribe and charge a fee to defray the costs of shipping alcoholic beverages, provided that such fee is determined in a manner provided by the department by rules and/or regulations adopted in accordance with the Mississippi Administrative Procedures Law. This paragraph (q) shall stand repealed on January 1, 2023.
SECTION 4. Section 67-1-43, Mississippi Code of 1972, is amended as follows:
67-1-43. Any authorized retail * * * permittee who shall purchase
or receive intoxicating liquor from any source except from * * * an authorized wholesaler,
unless authorized by rules and regulations of the department promulgated under
Section 67-1-41, shall be guilty of a misdemeanor and upon conviction thereof
shall be punished by a fine of not less than Five Hundred Dollars ($500.00), nor
more than Two Thousand Dollars ($2,000.00), to which may be added imprisonment
in the county jail for not more than six (6) months. Any authorization of such
person to sell intoxicating beverages may be revoked as provided by law.
SECTION 5. Section 67-1-45, Mississippi Code of 1972, is amended as follows:
67-1-45. No manufacturer, rectifier
or distiller of alcoholic beverages shall sell or attempt to sell any such alcoholic
beverages, except malt liquor, within the State of Mississippi, except to * * * an authorized wholesaler,
or as provided in Section 67-1-41, or pursuant to Section 67-1-51. A producer of
native wine or native spirit may sell native wines or native spirits, respectively,
to * * *
an authorized wholesaler or to consumers at the location of the native winery
or native distillery or its immediate vicinity. For the purposes of this section,
"authorized wholesaler" does not include package retail permittees who
resell alcoholic beverages at wholesale to other permittees. Such package retail
permittees may only purchase alcoholic beverages as otherwise authorized by this
chapter.
Any violation of this section by any manufacturer, rectifier or distiller shall be punished by a fine of not less than Five Hundred Dollars ($500.00), and not more than Two Thousand Dollars ($2,000.00), to which may be added imprisonment in the county jail not to exceed six (6) months.
SECTION 6. Section 67-1-47, Mississippi Code of 1972, is amended as follows:
67-1-47. All distillers or
distributors having contracts with * * * any authorized
wholesaler for the sale of alcoholic beverages * * * throughout
the state, before making delivery of any merchandise to the * * * wholesaler, shall
register with the Secretary of State giving their name, address, name of all local
agents and any other pertinent information which may be required by the
Secretary of State and appointing an agent for the service of process within
the State of Mississippi.
SECTION 7. Section 67-1-49, Mississippi Code of 1972, is amended as follows:
67-1-49. All distillers or
distributors having contracts with the * * * any authorized wholesaler
for the sale of alcoholic beverages * * * throughout the state,
shall, on or before February 1st of each year, file a statement, under oath,
with the * * * Department of Revenue and with the Secretary of
State, listing the names and addresses of each person, firm or corporation in
Mississippi to whom or which said distiller or distributor shall have paid or
agreed to pay any fee, retainer, salary, or remuneration, during the preceding
year, together with a statement of the purpose for such payment. Failure to
file such statement shall constitute grounds for the commission to suspend the
right of the distiller or distributor to sell to said commission until such
time as said statement shall be filed.
SECTION 8. Section 67-1-51, Mississippi Code of 1972, is amended as follows:
67-1-51. (1) Permits which may be issued by the department shall be as follows:
(a) Manufacturer's permit. A manufacturer's permit shall permit the manufacture, importation in bulk, bottling and storage of alcoholic liquor and its distribution and sale to manufacturers holding permits under this chapter in this state and to persons outside the state who are authorized by law to purchase the same, and to sell as provided by this chapter.
Manufacturer's permits shall be of the following classes:
Class 1. Distiller's and/or rectifier's permit, which shall authorize the holder thereof to operate a distillery for the production of distilled spirits by distillation or redistillation and/or to operate a rectifying plant for the purifying, refining, mixing, blending, flavoring or reducing in proof of distilled spirits and alcohol.
Class 2. Wine manufacturer's permit, which shall authorize the holder thereof to manufacture, import in bulk, bottle and store wine or vinous liquor.
Class 3. Native wine producer's permit, which shall authorize the holder thereof to produce, bottle, store and sell native wines.
Class 4. Native spirit producer's permit, which shall authorize the holder thereof to produce, bottle, store and sell native spirits.
(b) Package retailer's permit. Except as otherwise provided in this paragraph and Section 67-1-52, a package retailer's permit shall authorize the holder thereof to operate a store exclusively for the sale at retail in original sealed and unopened packages of alcoholic beverages, including native wines and native spirits, not to be consumed on the premises where sold. Alcoholic beverages shall not be sold by any retailer in any package or container containing less than fifty (50) milliliters by liquid measure. A package retailer's permit, with prior approval from the department, shall authorize the holder thereof to sample new product furnished by a manufacturer's representative or his employees at the permitted place of business so long as the sampling otherwise complies with this chapter and applicable department regulations. Such samples may not be provided to customers at the permitted place of business. In addition to the sale at retail of packages of alcoholic beverages, the holder of a package retailer's permit is authorized to sell at retail corkscrews, wine glasses, soft drinks, ice, juices, mixers and other beverages commonly used to mix with alcoholic beverages. Nonalcoholic beverages sold by the holder of a package retailer's permit shall not be consumed on the premises where sold.
(c) On-premises retailer's permit. Except as otherwise provided in subsection (5) of this section, an on-premises retailer's permit shall authorize the sale of alcoholic beverages, including native wines and native spirits, for consumption on the licensed premises only; however, a patron of the permit holder may remove one (1) bottle of wine from the licensed premises if: (i) the patron consumed a portion of the bottle of wine in the course of consuming a meal purchased on the licensed premises; (ii) the permit holder securely reseals the bottle; (iii) the bottle is placed in a bag that is secured in a manner so that it will be visibly apparent if the bag is opened; and (iv) a dated receipt for the wine and the meal is available. Additionally, as part of a carryout order, a permit holder may sell one (1) bottle of wine to be removed from the licensed premises for every two (2) entrees ordered. Such a permit shall be issued only to qualified hotels, restaurants and clubs, small craft breweries, microbreweries, and to common carriers with adequate facilities for serving passengers. In resort areas, whether inside or outside of a municipality, the department, in its discretion, may issue on-premises retailer's permits to such establishments as it deems proper. An on-premises retailer's permit when issued to a common carrier shall authorize the sale and serving of alcoholic beverages aboard any licensed vehicle while moving through any county of the state; however, the sale of such alcoholic beverages shall not be permitted while such vehicle is stopped in a county that has not legalized such sales. If an on-premises retailer's permit is applied for by a common carrier operating solely in the water, such common carrier must, along with all other qualifications for a permit, (i) be certified to carry at least one hundred fifty (150) passengers and/or provide overnight accommodations for at least fifty (50) passengers and (ii) operate primarily in the waters within the State of Mississippi which lie adjacent to the State of Mississippi south of the three (3) most southern counties in the State of Mississippi and/or on the Mississippi River or navigable waters within any county bordering on the Mississippi River.
(d) Solicitor's permit. A solicitor's permit shall authorize the holder thereof to act as salesman for a manufacturer or wholesaler holding a proper permit, to solicit on behalf of his employer orders for alcoholic beverages, and to otherwise promote his employer's products in a legitimate manner. Such a permit shall authorize the representation of and employment by one (1) principal only. However, the permittee may also, in the discretion of the department, be issued additional permits to represent other principals. No such permittee shall buy or sell alcoholic beverages for his own account, and no such beverage shall be brought into this state in pursuance of the exercise of such permit otherwise than through a permit issued to a wholesaler or manufacturer in the state.
(e) Native wine retailer's permit. Except as otherwise provided in subsection (5) of this section, a native wine retailer's permit shall be issued only to a holder of a Class 3 manufacturer's permit, and shall authorize the holder thereof to make retail sales of native wines to consumers for on-premises consumption or to consumers in originally sealed and unopened containers at an establishment located on the premises of or in the immediate vicinity of a native winery. When selling to consumers for on-premises consumption, a holder of a native wine retailer's permit may add to the native wine alcoholic beverages not produced on the premises, so long as the total volume of foreign beverage components does not exceed twenty percent (20%) of the mixed beverage. Hours of sale shall be the same as those authorized for on-premises permittees in the city or county in which the native wine retailer is located.
(f) Temporary retailer's permit. Except as otherwise provided in subsection (5) of this section, a temporary retailer's permit shall permit the purchase and resale of alcoholic beverages, including native wines and native spirits, during legal hours on the premises described in the temporary permit only.
Temporary retailer's permits shall be of the following classes:
Class 1. A temporary one-day permit may be issued to bona fide nonprofit civic or charitable organizations authorizing the sale of alcoholic beverages, including native wine and native spirit, for consumption on the premises described in the temporary permit only. Class 1 permits may be issued only to applicants demonstrating to the department, by a statement signed under penalty of perjury submitted ten (10) days prior to the proposed date or such other time as the department may determine, that they meet the qualifications of Sections 67-1-11, 67-1-37, 67-1-51(2) and (3), 67-1-55, 67-1-57 (excluding paragraph (e)) and 67-1-59. Class 1 permittees shall obtain all alcoholic beverages from package retailers located in the county in which the temporary permit is issued. Alcoholic beverages remaining in stock upon expiration of the temporary permit may be returned by the permittee to the package retailer for a refund of the purchase price upon consent of the package retailer or may be kept by the permittee exclusively for personal use and consumption, subject to all laws pertaining to the illegal sale and possession of alcoholic beverages. The department, following review of the statement provided by the applicant and the requirements of the applicable statutes and regulations, may issue the permit.
Class 2. A temporary permit, not to exceed seventy (70) days, may be issued to prospective permittees seeking to transfer a permit authorized in paragraph (c) of this subsection. A Class 2 permit may be issued only to applicants demonstrating to the department, by a statement signed under the penalty of perjury, that they meet the qualifications of Sections 67-1-5(l), (m), (n), (o), (p) or (q), 67-1-37, 67-1-51(2) and (3), 67-1-55, 67-1-57 and 67-1-59. The department, following a preliminary review of the statement provided by the applicant and the requirements of the applicable statutes and regulations, may issue the permit.
Class 2 temporary permittees
must purchase their alcoholic beverages directly from * * * an authorized wholesaler or,
with approval of the department, purchase the remaining stock of the previous permittee.
If the proposed applicant of a Class 1 or Class 2 temporary permit falsifies information
contained in the application or statement, the applicant shall never again be eligible
for a retail alcohol beverage permit and shall be subject to prosecution for perjury.
Class 3. A temporary one-day permit may be issued to a retail establishment authorizing the complimentary distribution of wine, including native wine, to patrons of the retail establishment at an open house or promotional event, for consumption only on the premises described in the temporary permit. A Class 3 permit may be issued only to an applicant demonstrating to the department, by a statement signed under penalty of perjury submitted ten (10) days before the proposed date or such other time as the department may determine, that it meets the qualifications of Sections 67-1-11, 67-1-37, 67-1-51(2) and (3), 67-1-55, 67-1-57 (excluding paragraph (e)) and 67-1-59. A Class 3 permit holder shall obtain all alcoholic beverages from the holder(s) of a package retailer's permit located in the county in which the temporary permit is issued. Wine remaining in stock upon expiration of the temporary permit may be returned by the Class 3 temporary permit holder to the package retailer for a refund of the purchase price, with consent of the package retailer, or may be kept by the Class 3 temporary permit holder exclusively for personal use and consumption, subject to all laws pertaining to the illegal sale and possession of alcoholic beverages. The department, following review of the statement provided by the applicant and the requirements of the applicable statutes and regulations, may issue the permit. No retailer may receive more than twelve (12) Class 3 temporary permits in a calendar year. A Class 3 temporary permit shall not be issued to a retail establishment that either holds a merchant permit issued under paragraph (l) of this subsection, or holds a permit issued under Chapter 3, Title 67, Mississippi Code of 1972, authorizing the holder to engage in the business of a retailer of light wine or beer.
(g) Caterer's permit. A caterer's permit shall permit the purchase of alcoholic beverages by a person engaging in business as a caterer and the resale of alcoholic beverages by such person in conjunction with such catering business. No person shall qualify as a caterer unless forty percent (40%) or more of the revenue derived from such catering business shall be from the serving of prepared food and not from the sale of alcoholic beverages and unless such person has obtained a permit for such business from the Department of Health. A caterer's permit shall not authorize the sale of alcoholic beverages on the premises of the person engaging in business as a caterer; however, the holder of an on-premises retailer's permit may hold a caterer's permit. When the holder of an on-premises retailer's permit or an affiliated entity of the holder also holds a caterer's permit, the caterer's permit shall not authorize the service of alcoholic beverages on a consistent, recurring basis at a separate, fixed location owned or operated by the caterer, on-premises retailer or affiliated entity and an on-premises retailer's permit shall be required for the separate location. All sales of alcoholic beverages by holders of a caterer's permit shall be made at the location being catered by the caterer, and, except as otherwise provided in subsection (5) of this section, such sales may be made only for consumption at the catered location. The location being catered may be anywhere within a county or judicial district that has voted to come out from under the dry laws or in which the sale and distribution of alcoholic beverages is otherwise authorized by law. Such sales shall be made pursuant to any other conditions and restrictions which apply to sales made by on-premises retail permittees. The holder of a caterer's permit or his employees shall remain at the catered location as long as alcoholic beverages are being sold pursuant to the permit issued under this paragraph (g), and the permittee shall have at the location the identification card issued by the Alcoholic Beverage Control Division of the department. No unsold alcoholic beverages may be left at the catered location by the permittee upon the conclusion of his business at that location. Appropriate law enforcement officers and Alcoholic Beverage Control Division personnel may enter a catered location on private property in order to enforce laws governing the sale or serving of alcoholic beverages.
(h) Research permit.
A research permit shall authorize the holder thereof to operate a research facility
for the professional research of alcoholic beverages. Such permit shall authorize
the holder of the permit to import and purchase limited amounts of alcoholic beverages
from * * * authorized wholesalers, importers, wineries and distillers
of alcoholic beverages for professional research.
(i) Alcohol processing permit. An alcohol processing permit shall authorize the holder thereof to purchase, transport and possess alcoholic beverages for the exclusive use in cooking, processing or manufacturing products which contain alcoholic beverages as an integral ingredient. An alcohol processing permit shall not authorize the sale of alcoholic beverages on the premises of the person engaging in the business of cooking, processing or manufacturing products which contain alcoholic beverages. The amounts of alcoholic beverages allowed under an alcohol processing permit shall be set by the department.
(j) Hospitality cart permit. A hospitality cart permit shall authorize the sale of alcoholic beverages from a mobile cart on a golf course that is the holder of an on-premises retailer's permit. The alcoholic beverages sold from the cart must be consumed within the boundaries of the golf course.
(k) Special service permit. A special service permit shall authorize the holder to sell commercially sealed alcoholic beverages to the operator of a commercial or private aircraft for en route consumption only by passengers. A special service permit shall be issued only to a fixed-base operator who contracts with an airport facility to provide fueling and other associated services to commercial and private aircraft.
(l) Merchant permit. Except as otherwise provided in subsection (5) of this section, a merchant permit shall be issued only to the owner of a spa facility, an art studio or gallery, or a cooking school, and shall authorize the holder to serve complimentary by the glass wine only, including native wine, at the holder's spa facility, art studio or gallery, or cooking school. A merchant permit holder shall obtain all wine from the holder of a package retailer's permit.
(m) Temporary alcoholic beverages charitable auction permit. A temporary permit, not to exceed five (5) days, may be issued to a qualifying charitable nonprofit organization that is exempt from taxation under Section 501(c)(3) or (4) of the Internal Revenue Code of 1986. The permit shall authorize the holder to sell alcoholic beverages for the limited purpose of raising funds for the organization during a live or silent auction that is conducted by the organization and that meets the following requirements: (i) the auction is conducted in an area of the state where the sale of alcoholic beverages is authorized; (ii) if the auction is conducted on the premises of an on-premises retailer's permit holder, then the alcoholic beverages to be auctioned must be stored separately from the alcoholic beverages sold, stored or served on the premises, must be removed from the premises immediately following the auction, and may not be consumed on the premises; (iii) the permit holder may not conduct more than two (2) auctions during a calendar year; (iv) the permit holder may not pay a commission or promotional fee to any person to arrange or conduct the auction.
(n) Event venue retailer's permit. An event venue retailer's permit shall authorize the holder thereof to purchase and resell alcoholic beverages, including native wines and native spirits, for consumption on the premises during legal hours during events held on the licensed premises if food is being served at the event by a caterer who is not affiliated with or related to the permittee. The caterer must serve at least three (3) entrees. The permit may only be issued for venues that can accommodate two hundred (200) persons or more. The number of persons a venue may accommodate shall be determined by the local fire department and such determination shall be provided in writing and submitted along with all other documents required to be provided for an on-premises retailer's permit. The permittee must derive the majority of its revenue from event-related fees, including, but not limited to, admission fees or ticket sales for live entertainment in the building. "Event-related fees" do not include alcohol, beer or light wine sales or any fee which may be construed to cover the cost of alcohol, beer or light wine. This determination shall be made on a per event basis. An event may not last longer than two (2) consecutive days per week.
(o) Temporary theatre permit. A temporary theatre permit, not to exceed five (5) days, may be issued to a charitable nonprofit organization that is exempt from taxation under Section 501(c)(3) or (4) of the Internal Revenue Code and owns or operates a theatre facility that features plays and other theatrical performances and productions. Except as otherwise provided in subsection (5) of this section, the permit shall authorize the holder to sell alcoholic beverages, including native wines and native spirits, to patrons of the theatre during performances and productions at the theatre facility for consumption during such performances and productions on the premises of the facility described in the permit. A temporary theatre permit holder shall obtain all alcoholic beverages from package retailers located in the county in which the permit is issued. Alcoholic beverages remaining in stock upon expiration of the temporary theatre permit may be returned by the permittee to the package retailer for a refund of the purchase price upon consent of the package retailer or may be kept by the permittee exclusively for personal use and consumption, subject to all laws pertaining to the illegal sale and possession of alcoholic beverages.
(p) Charter ship operator's permit. Subject to the provisions of this paragraph (p), a charter ship operator's permit shall authorize the holder thereof and its employees to serve, monitor, store and otherwise control the serving and availability of alcoholic beverages to customers of the permit holder during private charters under contract provided by the permit holder. A charter ship operator's permit shall authorize such action by the permit holder and its employees only as to alcoholic beverages brought onto the permit holder's ship by customers of the permit holder as part of such a private charter. All such alcoholic beverages must be removed from the charter ship at the conclusion of each private charter. A charter ship operator's permit shall not authorize the permit holder to sell, charge for or otherwise supply alcoholic beverages to customers, except as authorized in this paragraph (p). For the purposes of this paragraph (p), "charter ship operator" means a common carrier that (i) is certified to carry at least one hundred fifty (150) passengers and/or provide overnight accommodations for at least fifty (50) passengers, (ii) operates only in the waters within the State of Mississippi, which lie adjacent to the State of Mississippi south of the three (3) most southern counties in the State of Mississippi, and (iii) provides charters under contract for tours and trips in such waters.
(q) Distillery retailer's permit. The holder of a Class 1 manufacturer's permit may obtain a distillery retailer's permit. A distillery retailer's permit shall authorize the holder thereof to sell at retail alcoholic beverages to consumers for on-premises consumption, or to consumers by the sealed and unopened bottle from a retail location at the distillery for off-premises consumption. The holder may only sell product manufactured by the manufacturer at the distillery described in the permit. However, when selling to consumers for on-premises consumption, a holder of a distillery retailer's permit may add other beverages, alcoholic or not, so long as the total volume of other beverage components containing alcohol does not exceed twenty percent (20%). Hours of sale shall be the same as those authorized for on-premises permittees in the city or county in which the distillery retailer is located.
The holder shall not sell at
retail more than ten percent (10%) of the alcoholic beverages produced annually
at its distillery. The holder shall not make retail sales of more than two and
twenty-five one-hundredths (2.25) liters, in the aggregate, of the alcoholic beverages
produced at its distillery to any one (1) individual for consumption off the premises
of the distillery within a twenty-four-hour period. The hours of sale shall be
the same as those hours for package retailers under this chapter. The holder of
a distillery retailer's permit is not required to purchase the alcoholic beverages
authorized to be sold by this paragraph from * * * an
authorized wholesaler; however, if the holder does not purchase the alcoholic
beverages from * * * an authorized wholesaler, the holder
shall pay to the department all taxes, fees and surcharges on the alcoholic beverages
that are imposed upon the sale of alcoholic beverages shipped by * * * an authorized wholesaler. In addition to alcoholic beverages,
the holder of a distillery retailer's permit may sell at retail promotional products
from the same retail location, including shirts, hats, glasses, and other promotional
products customarily sold by alcoholic beverage manufacturers.
(r) Festival Wine Permit.
Any wine manufacturer or native wine producer permitted by Mississippi or any other
state is eligible to obtain a Festival Wine Permit. This permit authorizes the
entity to transport product manufactured by it to festivals held within the State
of Mississippi and sell sealed, unopened bottles to festival participants. The
holder of this permit may provide samples at no charge to participants. "Festival"
means any event at which three (3) or more vendors are present at a location for
the sale or distribution of goods. The holder of a Festival Wine Permit is not
required to purchase the alcoholic beverages authorized to be sold by this paragraph
from * * * an authorized wholesaler. However, if
the holder does not purchase the alcoholic beverages from * * * an
authorized wholesaler, the holder of this permit shall pay to the department
all taxes, fees and surcharges on the alcoholic beverages sold at such festivals
that are imposed upon the sale of alcoholic beverages shipped by * * * an authorized wholesaler. Additionally, the entity shall
file all applicable reports and returns as prescribed by the department. This permit
is issued per festival and provides authority to sell for two (2) consecutive days
during the hours authorized for on-premises permittees' sales in that county or
city. The holder of the permit shall be required to maintain all requirements set
by Local Option Law for the service and sale of alcoholic beverages. This permit
may be issued to entities participating in festivals at which a Class 1 temporary
permit is in effect.
This paragraph (r) shall stand repealed from and after July 1, 2023.
(s) Charter vessel operator's permit. Subject to the provisions of this paragraph (s), a charter vessel operator's permit shall authorize the holder thereof and its employees to sell and serve alcoholic beverages to passengers of the permit holder during public tours, historical tours, ecological tours and sunset cruises provided by the permit holder. The permit shall authorize the holder to only sell alcoholic beverages, including native wines, to passengers of the charter vessel operator during public tours, historical tours, ecological tours and sunset cruises provided by the permit holder aboard the charter vessel operator for consumption during such tours and cruises on the premises of the charter vessel operator described in the permit. For the purposes of this paragraph (s), "charter vessel operator" means a common carrier that (i) is certified to carry at least forty-nine (49) passengers, (ii) operates only in the waters within the State of Mississippi, which lie south of Interstate 10 in the three (3) most southern counties in the State of Mississippi, and lie adjacent to the State of Mississippi south of the three (3) most southern counties in the State of Mississippi, extending not further than one (1) mile south of such counties, and (iii) provides vessel services for tours and cruises in such waters as provided in this paragraph (s).
(t) Native spirit retailer's permit. Except as otherwise provided in subsection (5) of this section, a native spirit retailer's permit shall be issued only to a holder of a Class 4 manufacturer's permit, and shall authorize the holder thereof to make retail sales of native spirits to consumers for on-premises consumption or to consumers in originally sealed and unopened containers at an establishment located on the premises of or in the immediate vicinity of a native distillery. When selling to consumers for on-premises consumption, a holder of a native spirit retailer's permit may add to the native spirit alcoholic beverages not produced on the premises, so long as the total volume of foreign beverage components does not exceed twenty percent (20%) of the mixed beverage. Hours of sale shall be the same as those authorized for on-premises permittees in the city or county in which the native spirit retailer is located.
(u) Delivery service permit. Any individual, limited liability company, corporation or partnership registered to do business in this state is eligible to obtain a delivery service permit. Subject to the provisions of Section 67-1-51.1, this permit authorizes the permittee, or its employee or an independent contractor acting on its behalf, to deliver alcoholic beverages, beer, light wine and light spirit product from a licensed retailer to a person in this state who is at least twenty-one (21) years of age for the individual's use and not for resale. This permit does not authorize the delivery of alcoholic beverages, beer, light wine or light spirit product to the premises of a location with a permit for the manufacture, distribution or retail sale of alcoholic beverages, beer, light wine or light spirit product. The holder of a package retailer's permit or an on-premises retailer's permit under Section 67-1-51 or of a beer, light wine and light spirit product permit under Section 67-3-19 is authorized to apply for a delivery service permit as a privilege separate from its existing retail permit.
(v) Wholesaler's permit. The holder of a wholesaler's permit may distribute alcoholic beverages throughout the State of Mississippi to properly permitted retailers for resale subject to the provisions of this chapter and any applicable regulations.
(2) Except as otherwise provided in subsection (4) of this section, retail permittees may hold more than one (1) retail permit, at the discretion of the department.
(3) (a) Except as otherwise provided in this subsection, no authority shall be granted to any person to manufacture, sell or store for sale any intoxicating liquor as specified in this chapter within four hundred (400) feet of any church, school, kindergarten or funeral home. However, within an area zoned commercial or business, such minimum distance shall be not less than one hundred (100) feet.
(b) A church or funeral home may waive the distance restrictions imposed in this subsection in favor of allowing issuance by the department of a permit, pursuant to subsection (1) of this section, to authorize activity relating to the manufacturing, sale or storage of alcoholic beverages which would otherwise be prohibited under the minimum distance criterion. Such waiver shall be in written form from the owner, the governing body, or the appropriate officer of the church or funeral home having the authority to execute such a waiver, and the waiver shall be filed with and verified by the department before becoming effective.
(c) The distance restrictions imposed in this subsection shall not apply to the sale or storage of alcoholic beverages at a bed and breakfast inn listed in the National Register of Historic Places or to the sale or storage of alcoholic beverages in a historic district that is listed in the National Register of Historic Places, is a qualified resort area and is located in a municipality having a population greater than one hundred thousand (100,000) according to the latest federal decennial census.
(d) The distance restrictions imposed in this subsection shall not apply to the sale or storage of alcoholic beverages at a qualified resort area as defined in Section
67-1-5(o)(iii)32.
(e) The distance restrictions imposed in this subsection shall not apply to the sale or storage of alcoholic beverages at a licensed premises in a building formerly owned by a municipality and formerly leased by the municipality to a municipal school district and used by the municipal school district as a district bus shop facility.
(f) The distance restrictions imposed in this subsection shall not apply to the sale or storage of alcoholic beverages at a licensed premises in a building consisting of at least five thousand (5,000) square feet and located approximately six hundred (600) feet from the intersection of Mississippi Highway 15 and Mississippi Highway 4.
(g) The distance restrictions imposed in this subsection shall not apply to the sale or storage of alcoholic beverages at a licensed premises in a building located at the southeast corner of Ward and Tate Streets in the City of Senatobia, Mississippi.
(4) No person, either individually or as a member of a firm, partnership, limited liability company or association, or as a stockholder, officer or director in a corporation, shall own or control any interest in more than one (1) package retailer's permit, nor shall such person's spouse, if living in the same household of such person, any relative of such person, if living in the same household of such person, or any other person living in the same household with such person own any interest in any other package retailer's permit.
(5) (a) In addition to any other authority granted under this section, the holder of a permit issued under subsection (1)(c), (e), (f), (g), (l), (n) and/or (o) of this section may sell or otherwise provide alcoholic beverages and/or wine to a patron of the permit holder in the manner authorized in the permit and the patron may remove an open glass, cup or other container of the alcoholic beverage and/or wine from the licensed premises and may possess and consume the alcoholic beverage or wine outside of the licensed premises if: (i) the licensed premises is located within a leisure and recreation district created under Section 67-1-101 and (ii) the patron remains within the boundaries of the leisure and recreation district while in possession of the alcoholic beverage or wine.
(b) Nothing in this subsection shall be construed to allow a person to bring any alcoholic beverages into a permitted premises except to the extent otherwise authorized by this chapter.
SECTION 9. Section 27-71-5, Mississippi Code of 1972, is amended as follows:
27-71-5. (1) Upon each person approved for a permit under the provisions of the Alcoholic Beverage Control Law and amendments thereto, there is levied and imposed for each location for the privilege of engaging and continuing in this state in the business authorized by such permit, an annual privilege license tax in the amount provided in the following schedule:
(a) Except as otherwise provided in this subsection (1), manufacturer's permit, Class 1, distiller's and/or
rectifier's:
(i) For a permittee with annual production of
five thousand (5,000) gallons or more.................. $4,500.00
(ii) For a permittee with annual production under five thousand (5,000) gallons............................... $2,800.00
(b) Manufacturer's permit, Class 2, wine
manufacturer.......................................... $1,800.00
(c) Manufacturer's permit, Class 3, native wine
manufacturer per ten thousand (10,000) gallons or part thereof produced...................................................... $ 10.00
(d) Manufacturer's permit, Class 4, native spirit
manufacturer per one thousand (1,000) gallons or part thereof produced...................................................... $ 300.00
(e) Native wine retailer's permit............ $ 50.00
(f) Package retailer's permit, each.......... $ 900.00
(g) On-premises retailer's permit, except for clubs and common carriers, each......................................... $ 450.00
(h) On-premises retailer's permit for wine of more than five percent (5%) alcohol by weight, but not more than twenty-one percent (21%) alcohol by weight, each.............................. $ 225.00
(i) On-premises retailer's permit for clubs.. $ 225.00
(j) On-premises retailer's permit for common carriers, per car, plane, or other vehicle........................... $ 120.00
(k) Solicitor's permit, regardless of any other provision of law, solicitor's permits shall be issued only in the discretion of the department............................................ $ 100.00
(l) Filing fee for each application except for an employee identification card.................................... $ 25.00
(m) Temporary permit, Class 1, each.......... $ 10.00
(n) Temporary permit, Class 2, each.......... $ 50.00
(o) (i) Caterer's permit................... $ 600.00
(ii) Caterer's permit for holders of on-premises retailer's permit...................................... $ 150.00
(p) Research permit......................... $ 100.00
(q) Temporary permit, Class 3 (wine only).... $ 10.00
(r) Special service permit.................. $ 225.00
(s) Merchant permit......................... $ 225.00
(t) Temporary alcoholic beverages charitable auction permit...................................................... $ 10.00
(u) Event venue retailer's permit............ $ 225.00
(v) Temporary theatre permit, each........... $ 10.00
(w) Charter ship operator's permit........... $ 100.00
(x) Distillery retailer's permit............. $ 450.00
(y) Festival wine permit.................... $ 10.00
(z) Charter vessel operator's permit......... $ 100.00
(aa) Native spirit retailer's permit......... $ 50.00
(bb) Delivery service permit................. $ 500.00
(cc) Wholesaler's permit.....................$ 5,000.00
In addition to the filing fee imposed by paragraph (l) of this subsection, a fee to be determined by the Department of Revenue may be charged to defray costs incurred to process applications. The additional fees shall be paid into the State Treasury to the credit of a special fund account, which is hereby created, and expenditures therefrom shall be made only to defray the costs incurred by the Department of Revenue in processing alcoholic beverage applications. Any unencumbered balance remaining in the special fund account on June 30 of any fiscal year shall lapse into the State General Fund.
All privilege taxes imposed by this section shall be paid in advance of doing business. A new permittee whose privilege tax is determined by production volume will pay the tax for the first year in accordance with department regulations. The additional privilege tax imposed for an on-premises retailer's permit based upon purchases shall be due and payable on demand.
Paragraph (y) of this subsection shall stand repealed from and after July 1, 2023.
(2) (a) There is imposed and shall be collected from each permittee, except a common carrier, solicitor, a temporary permittee or a delivery service permittee, by the department, an additional license tax equal to the amounts imposed under subsection (1) of this section for the privilege of doing business within any municipality or county in which the licensee is located.
(b) (i) In addition to the tax imposed in paragraph (a) of this subsection, there is imposed and shall be collected by the department from each permittee described in subsection (1)(g), (h), (i), (n) and (u) of this section, an additional license tax for the privilege of doing business within any municipality or county in which the licensee is located in the amount of Two Hundred Twenty-five Dollars ($225.00) on purchases exceeding Five Thousand Dollars ($5,000.00) and Two Hundred Twenty-five Dollars ($225.00) for each additional purchase of Five Thousand Dollars ($5,000.00), or fraction thereof.
(ii) In addition to the tax imposed in paragraph (a) of this subsection, there is imposed and shall be collected by the department from each permittee described in subsection (1)(o) and (s) of this section, an additional license tax for the privilege of doing business within any municipality or county in which the licensee is located in the amount of Two Hundred Fifty Dollars ($250.00) on purchases exceeding Five Thousand Dollars ($5,000.00) and Two Hundred Twenty-five Dollars ($225.00) for each additional purchase of Five Thousand Dollars ($5,000.00), or fraction thereof.
(iii) Any person who has paid the additional privilege license tax imposed by this paragraph, and whose permit is renewed, may add any unused fraction of Five Thousand Dollars ($5,000.00) purchases to the first Five Thousand Dollars ($5,000.00) purchases authorized by the renewal permit, and no additional license tax will be required until purchases exceed the sum of the two (2) figures.
(c) If the licensee is located within a municipality, the department shall pay the amount of additional license tax collected under this section to the municipality, and if outside a municipality the department shall pay the additional license tax to the county in which the licensee is located. Payments by the department to the respective local government subdivisions shall be made once each month for any collections during the preceding month.
(3) When an application for any permit, other than for renewal of a permit, has been rejected by the department, such decision shall be final. Appeal may be made in the manner provided by Section 67-1-39. Another application from an applicant who has been denied a permit shall not be reconsidered within a twelve-month period.
(4) The number of permits issued by the department shall not be restricted or limited on a population basis; however, the foregoing limitation shall not be construed to preclude the right of the department to refuse to issue a permit because of the undesirability of the proposed location.
(5) If any person shall engage or continue in any business which is taxable under this section without having paid the tax as provided in this section, the person shall be liable for the full amount of the tax plus a penalty thereon equal to the amount thereof, and, in addition, shall be punished by a fine of not more than One Thousand Dollars ($1,000.00), or by imprisonment in the county jail for a term of not more than six (6) months, or by both such fine and imprisonment, in the discretion of the court.
(6) It shall be unlawful for any person to consume alcoholic beverages on the premises of any hotel restaurant, restaurant, club or the interior of any public place defined in Chapter 1, Title 67, Mississippi Code of 1972, when the owner or manager thereof displays in several conspicuous places inside the establishment and at the entrances of establishment a sign containing the following language: NO ALCOHOLIC BEVERAGES ALLOWED.
SECTION 10. 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 * * * an authorized wholesaler to
be collected from each retail licensee at the time of sale in accordance with the
following schedule:
(a) Distilled spirits................ $2.50 per gallon
(b) Sparkling wine and champagne...... $1.00 per gallon
(c) Other wines, including
native wines.................................... $ .35 per gallon
(2) * * *
Upon every person engaged or continuing in this state in business
as an authorized wholesaler there is hereby levied, assessed and shall be
collected a tax of eighteen percent (18%) on the gross proceeds of the
wholesale sale. This tax shall be in addition to any and all taxes otherwise imposed
under this title.
(3) The taxes imposed by this section shall be paid to the department monthly on or before the fifteenth day of the month following the month in which the sales were made by a wholesaler. Monthly report forms shall be furnished by the commissioner to the wholesalers.
SECTION 11. Section 27-71-9, Mississippi Code of 1972, is amended as follows:
27-71-9. The * * * department may promulgate
regulations authorizing persons holding on premises retailer's permits for
common carriers, as provided herein, to file periodic reports and pay a tax
based upon the value of alcoholic beverages sold while in this state, in lieu
of purchasing all such alcoholic beverages from the * * * an authorized wholesaler.
Such tax shall not be less than an amount equivalent to the gross profit plus
all taxes that would have been derived from the sale of a like quantity of
alcoholic beverages by the * * * wholesaler.
SECTION 12. 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.
* * *
Through June 30, 2023, the department may take any action necessary to dispose of its inventory by allowing suppliers and/or other entities with products in the inventory to remove their products from the inventory.
This section shall stand repealed on July 1, 2023.
SECTION 13. Section 27-71-13, Mississippi Code of 1972, is amended as follows:
27-71-13. The * * * department shall purchase
directly from the manufacturer, except under the following conditions:
(a) Foreign brands which are not readily obtainable directly from the manufacturer.
(b) When the * * * department can conclusively
prove that unusual or extraordinary circumstances exist and the required or
desired brands can be purchased at substantially lower prices from wholesalers
or brokerage firms.
In all instances involving
purchases, other than directly from the manufacturer, the * * * department shall maintain
full and complete records clearly reflecting the justification for such
purchases. Said records shall include invoices, price lists, comparative
prices, bills of lading and a certificate of justification signed by the
director of the Alcoholic Beverage Control Division, as to the conditions requiring
the purchase or purchases. All such records shall be retained for a period of
three (3) years.
This section shall stand repealed on January 1, 2023.
SECTION 14. Section 27-71-15, Mississippi Code of 1972, is amended as follows:
27-71-15. Except as
otherwise provided in Section 67-9-1 for the transportation of limited amounts of
alcoholic beverages for the use of an alcohol processing permittee, if
transportation requires passage through a county which has not authorized the
sale of alcoholic beverages, such transportation shall be by a sealed vehicle.
Such seal shall remain unbroken until the vehicle shall reach the place of
business operated by the permittee. The operator of any vehicle transporting
alcoholic beverages shall have in his possession an invoice issued by the * * * wholesaler at the time of the
wholesale sale covering the merchandise transported by the vehicle. The * * * department is authorized to
issue regulations controlling the transportation of alcoholic beverages.
When the restrictions
imposed by this section and by the regulation of the * * * department have not been
violated, the person transporting alcoholic beverages through a county wherein
the sale of alcoholic beverages is prohibited shall not be guilty of unlawful
possession and such merchandise shall be immune from seizure.
SECTION 15. Section 27-71-17, Mississippi Code of 1972, is amended as follows:
27-71-17. It shall be
unlawful for any person to counterfeit or reuse any label prescribed by the * * * department and used to
identify alcoholic beverages sold at wholesale by * * * a wholesaler and,
upon conviction, the person shall be punished by a fine of not more than Five
Thousand Dollars ($5,000.00), or by imprisonment in the State Penitentiary for
not less than one (1) year, nor more than ten (10) years, or both.
SECTION 16. Section 27-71-21, Mississippi Code of 1972, is amended as follows:
27-71-21. Before any person shall engage in the business of manufacturing, wholesaling or retailing of alcoholic beverages, he may be required to enter into a bond payable to the State of Mississippi, conditioned that he will conduct said business strictly in accordance with the laws of the State of Mississippi, and that he will comply with the rules and regulations prescribed by the department, and pay all taxes due the State of Mississippi. The amount of a bond required of a manufacturer, not including a producer of native wine or native spirit, and a wholesaler shall not exceed One Hundred Thousand Dollars ($100,000.00), and the amount required of a retailer shall be Five Thousand Dollars ($5,000.00). Provided, however, any retailer whose check for purchase of merchandise or payment of taxes shall be dishonored may be required by the department to post additional bond not to exceed Five Thousand Dollars ($5,000.00). Such bond shall be made in a surety company authorized to do business in the State of Mississippi and shall be approved by the department. The department shall be authorized to institute suit in the proper court for any violation of the condition of said bonds. The amount of the bond required of a producer of native wine or native spirit shall be Five Thousand Dollars ($5,000.00).
As an alternative to entering into a bond as required by this section, any person who shall engage in the business of manufacturing, wholesaling or retailing alcoholic beverages may, subject to the same conditions of conduct required for bonds, deposit with the State Treasurer the equivalent amount of the bond required for that particular person in cash or securities. The only securities allowable for this purpose are those which may legally be purchased by a bank or for trust funds, having a market value not less than that of the required bond. The department shall file notice with the Treasurer for any violation of the conditions of the cash or security deposit.
SECTION 17. Section 27-71-25, Mississippi Code of 1972, is amended as follows:
27-71-25. Any person engaged
in the business of selling or distributing alcoholic beverages shall
keep such records and make such reports with respect to the receipt,
distribution and sale of alcoholic beverages as the * * * department may require. It
shall be the duty of the * * *commission department to prescribe and promulgate
uniform rules and regulations for keeping such records and making such reports.
SECTION 18. Section 27-71-29, Mississippi Code of 1972, is amended as follows:
27-71-29. All taxes levied by this article shall be paid to the Department of Revenue in cash or by personal check, cashier's check, bank exchange, post office money order or express money order and shall be deposited by the department in the State Treasury on the same day collected, but no remittances other than cash shall be a final discharge of liability for the tax herein imposed and levied unless and until it has been paid in cash to the department.
All taxes levied under Section
27-71-7 * * *
and received by the department under this article shall be paid into the
General Fund, * * * except that sixteen and six hundred
sixty-seven one-thousandths percent (16.667%) of the revenue derived from taxes
levied under Section 27-71-7(2) shall be deposited into the Mental Health Programs
Fund. * * *
SECTION 19. Section 67-5-13, Mississippi Code of 1972, is amended as follows:
67-5-13. (1) Upon every producer holding a permit for the production of native wine, there is levied and imposed for each location for the privilege of engaging and continuing in this state in the production of native wine an annual privilege license tax in an amount equal to Ten Dollars ($10.00) for each ten thousand (10,000) gallons, or any part thereof, of native wine produced by the winery.
(2) There is levied and
assessed an excise tax upon each case of native wine sold by a producer to any
source to be collected from the producer in the amount provided for in Section
27-71-7. However, native wine produced in Mississippi for export and sale
without this state and native wine produced in Mississippi and sold to the * * * an authorized wholesaler
shall not be subject to the excise tax, nor shall the tax accrue or be
collected on native wines dispensed, as free samples in quantities of not more
than six (6) ounces, in the tasting room of a native winery.
(3) The privilege tax imposed
by subsection (1) of this section shall be collected in the same manner as
presently provided by law for the collection of other alcoholic beverages. The
excise tax imposed by subsection (2) of this section shall be reported monthly
by the producer to the * * *
department on all sales made in Mississippi to consumers at the location
of the native winery or its immediate vicinity, along with a statement of
gallonage produced during that month, and the producer shall remit the tax due
and owing with each report. The producer shall also include in the report a
statement of gallonage sold and exported for sale outside this state.
(4) All taxes levied by and collected under this section shall be deposited in the General Fund.
SECTION 20. This act shall take effect and be in force from and after January 1, 2023.