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.




     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.