SENATE BILL No. 506

 

 

September 17, 2013, Introduced by Senator HUNE and referred to the Committee on Regulatory Reform.

 

 

 

     A bill to amend 1998 PA 58, entitled

 

"Michigan liquor control code of 1998,"

 

by amending section 409 (MCL 436.1409), as amended by 2000 PA 395.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 409. (1) Except as provided in this section, the

 

commission shall levy and collect a tax on all beer manufactured or

 

sold in this state at the rate of $6.30 per barrel if the beer is

 

sold in bulk or in different quantities. The If the beer is

 

manufactured in this state, the tax shall be paid by the brewer or

 

brewpub if that manufactured in this state or by the wholesaler or

 

the person from whom purchased if the beer unless the brewer

 

designates the wholesaler to pay the tax on behalf of the brewer.

 

If the beer is manufactured outside this state, whichever is

 

designated by the commission. the tax shall be paid by the

 


wholesaler assigned to distribute that beer and the tax shall be

 

levied and collected on the number of barrels the wholesaler

 

actually sold of that beer. The commission shall establish by rule

 

a method for the collection of the tax levied in this subsection.

 

However, the commission shall not require that the tax levied in

 

this subsection be paid in less than quarterly intervals. The rules

 

shall be promulgated pursuant to the administrative procedures act

 

of 1969, 1969 PA 306, MCL 24.201 to 24.328.

 

     (2) The tax levied in subsection (1) shall not be collected

 

with respect to on beer that is consumed on the premises of the

 

manufacturer or is damaged in the process of brewing, packaging,

 

and storage and is not offered for sale, except that beer sold by a

 

brewpub for consumption on the premises or beer produced and

 

consumed on the premises of a micro brewer is subject to the tax

 

levied under subsection (1).

 

     (3) The tax levied under subsection (1) shall be rebated to

 

the person who that paid the tax if that person provides

 

satisfactory proof to the commission that the beer was shipped

 

outside of this state for sale and consumption outside this state.

 

     (4) For the purposes of the tax levied under subsection (1), a

 

barrel of beer contains 31 gallons.

 

     (5) The commission may promulgate a rule that designates the

 

states or the laws or the rules of other states that require a

 

licensed wholesaler of beer to pay an additional fee for the right

 

to purchase, import, or sell beer manufactured in this state; that

 

denies the issuance of a license authorizing the importation of

 

beer to any licensed wholesaler of beer in that state who may make

 


application applies for the license; that prohibits licensed

 

wholesalers of beer in that state from possessing or selling beer

 

purchased in this state, unless the person from whom the beer was

 

purchased has secured a license and paid a fee in that state, if

 

the seller does not transport the beer into the state and does not

 

sell the beer in the state; or that imposes any higher taxes or

 

inspection fees upon beer manufactured in this state when

 

transporting the beer into or selling the beer in that state than

 

taxes or fees imposed upon beer manufactured and sold within that

 

state. A rule promulgated under this subsection shall prohibit all

 

licensees from purchasing, receiving, possessing, or selling any

 

beer manufactured in any state designated in the rule. A rule

 

promulgated under this subsection becomes effective as provided in

 

section 47 of the administrative procedures act of 1969, 1969 PA

 

306, MCL 24.247. Any licensee or person adversely affected by a

 

rule promulgated under this subsection is entitled to review by

 

leave to a court of competent jurisdiction regarding the question

 

as to whether the commission acted illegally or in excess of its

 

authority in making its finding under this subsection with respect

 

to any state.

 

     (6) An eligible brewer or a wholesaler designated to pay the

 

tax of an eligible brewer may claim a credit against the tax levied

 

under subsection (1) in the amount of $2.00 per barrel for the

 

first 30,000 barrels. As used in this subsection, "eligible brewer"

 

means a brewer, whether or not located in this state, or brewpub

 

that manufactures not more than 50,000 barrels of beer during the

 

tax year for which the credit is claimed. In determining the number

 


of barrels for purposes of the credit, all brands and labels of a

 

brewer shall be combined and all facilities for the production of

 

beer that are owned or controlled by the same person shall be

 

treated as a single facility.