Senate Bill 2820

AN ACT TO AMEND SECTION 27-71-307, MISSISSIPPI CODE OF 1972, TO APPLY THE EXCISE TAX ON BEER TO BEER PROVIDED ON THE PREMISES OF A BREWERY FOR THE PURPOSE OF TASTING OR SAMPLING; TO AMEND SECTION 67-3-47, MISSISSIPPI CODE OF 1972, TO MAKE IT CLEAR THAT THE HOLDER OF A LICENSE TO OPERATE A BREWERY MUST KEEP AN ACCURATE ACCOUNTING OF THE AMOUNT OF BEER PROVIDED AND CONSUMED AS SAMPLES; TO AMEND SECTION 67-3-74, MISSISSIPPI CODE OF 1972, TO AUTHORIZE ENFORCEMENT OFFICERS OF THE ALCOHOLIC BEVERAGE CONTROL DIVISION OF THE DEPARTMENT OF REVENUE TO ENFORCE THE PROVISIONS OF LAW THAT AUTHORIZE THE TASTING OR SAMPLING OF BEER ON THE PREMISES OF A BREWERY; AND FOR RELATED PURPOSES.

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

SECTION 1. 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 Forty-two and Sixty-eight One-hundredths Cents (42.68¢) per gallon upon all light wines and beer acquired for sale or distribution in this state. * * *~~Such~~ The 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. The tax is also imposed on each gallon of beer provided for the purpose of tasting or sampling as authorized in Section 67-3-47. * * * ~~Such~~ The 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 * * *~~State Tax Commission~~ 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 or the month following the date the beer was provided for tasting or sampling as authorized in Section 67-3-47. Monthly report forms shall be furnished by the commissioner to the wholesalers, distributors, manufacturer 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~~ those sales to the commissioner within fifteen (15) days after the end of each month on a form prescribed * * *~~therefor~~ for that purpose by the commissioner, and shall pay the tax due under the provisions of this section at the time * * * ~~such~~ the 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~~ 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~~ the 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~~ that law, 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 2. Section 67-3-47, Mississippi Code of 1972, is amended as follows:

67-3-47. (1) A person having a permit to manufacture or brew beer under this chapter and who operates a brewery may offer and provide limited amounts of beer on the premises of the brewery for the purpose of tasting or sampling, subject to the following conditions:

(a) The beer provided for tasting or sampling must be manufactured in the State of Mississippi by the holder of the permit;

(b) The beer may be provided only to persons on the premises of the brewery at no cost and for consumption on the premises of the brewery;

(c) The beer may be provided for tasting or sampling between the hours of 8:00 a.m. and 10:00 p.m. on the same day and only in conjunction with a structured tour of the brewery and related facilities which must include the entire manufacturing and brewing processes and methods used at the brewery;

(d) No one under twenty-one (21) years of age may participate in the tasting or sampling, and a sign indicating that prohibition shall be placed in a visible location at the entrance to the area where the tasting or sampling will be conducted;

(e) An individual size sample of beer shall not exceed six (6) ounces, and no more than six (6) samples of beer may be provided to an individual within a twenty-four-hour period; and

(f) The holder of the license operating the brewery shall keep an accurate accounting of the * * *~~various beers~~ amount of beer provided and consumed as samples.

(2) For the purposes of this section, the term "brewery" means and has the same definition as that term has in 26 USCS 5402.

SECTION 3. Section 67-3-74, Mississippi Code of 1972, is amended as follows:

67-3-74. (1) In addition to peace officers within their jurisdiction, all enforcement officers of the Alcoholic Beverage Control Division of the Department of Revenue are authorized to enforce the provisions of Section 67-3-47 and the provisions made unlawful by Sections 67-3-13, 67-3-15, 67-3-53, 67-3-57 and 67-3-70; * * *~~provided,~~ however, * * *~~that~~ the provisions prohibiting the sale of light wine or beer to persons under the age of twenty-one (21) years shall be enforced by the division as provided for in this section.

(2) (a) The Alcoholic Beverage Control Division shall investigate violations of the laws prohibiting the sale of light wine or beer to persons under the age of twenty-one (21) years upon receipt of a complaint or information from a person stating that they have knowledge of such violation.

(b) Upon receipt of such complaint or information, the Alcoholic Beverage Control Division shall notify the permit holder of the complaint by certified mail to the primary business office of such permit holder or by hand delivery of the complaint or information to the primary business office of such holder, except in cases where the complaint or information is received from any law enforcement officer.

(c) If an enforcement officer of the Alcoholic Beverage Control Division enters the business of the holder of the permit to investigate a complaint and discovers a violation, the agent shall notify the person that committed the violation and the holder of the permit:

(i) Within ten (10) days after such violation, Sundays and holidays excluded, if the business sells light wine or beer for on-premises consumption; and

(ii) Within seventy-two (72) hours after such violation, Sundays and holidays excluded, if the business does not sell light wine or beer for on-premises consumption.

SECTION 4. This act shall take effect and be in force from and after July 1, 2016.