2016 -- H 7266

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LC003372

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO ALCOHOLIC BEVERAGES -- MANUFACTURING AND WHOLESALE

LICENSES

     

     Introduced By: Representatives Abney, Canario, Edwards, Reilly, and Carson

     Date Introduced: January 21, 2016

     Referred To: House Finance

     (by request)

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 3-6-1 of the General Laws in Chapter 3-6 entitled "Manufacturing

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and Wholesale Licenses" is hereby amended to read as follows:

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     3-6-1. Manufacturer's license. -- (a) A manufacturer's license authorizes the holder to

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establish and operate a brewery, distillery, or winery at the place described in the license for the

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manufacture of beverages within this state. The license does not authorize more than one of the

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activities of operator of a brewery or distillery or winery and a separate license shall be required

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for each plant.

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      (b) The license also authorizes the sale at wholesale at the licensed place by the

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manufacturer of the product of the licensed plant to another license holder and the transportation

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and delivery from the place of sale to a licensed place or to a common carrier for that delivery.

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The license does not authorize the sale of beverages for consumption on premises where sold.

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The license does not authorize the sale of beverages in this state for delivery outside this state in

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violation of the law of the place of delivery. The license holder may provide to visitors in

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conjunction with a tour and/or tasting, samples, clearly marked as samples, not to exceed three

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hundred seventy-five milliliters (375 ml) per visitor for distilled spirits and seventy-two ounces

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(72 oz) per visitor for malt beverages at the licensed plant by the manufacturer of the product of

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the licensed plant to visitors for off-premise consumption. The license does not authorize

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providing samples to a visitor of any alcoholic beverages for off-premise consumption that are

 

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not manufactured at the licensed plant.

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      (c) The annual fee for the license is three thousand dollars ($3,000) for a distillery

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producing more than fifty thousand (50,000) gallons per year and five hundred dollars ($500) for

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a distillery producing less than fifty thousand (50,000) gallons per year, five hundred dollars

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($500) for a brewery, and one thousand five hundred dollars ($1,500) for a winery producing

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more than fifty thousand (50,000) gallons per year and five hundred dollars ($500) per year for a

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winery producing less than fifty thousand (50,000) gallons per year. All those fees are prorated to

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the year ending December 1 in every calendar year and shall be paid to the division of taxation

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and be turned over to the general treasurer for the use of the state.

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     SECTION 2. Section 3-10-1 of the General Laws in Chapter 3-10 entitled "Taxation of

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Beverages" is hereby amended to read as follows:

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     3-10-1. Manufacturing tax rates -- Exemption of religious uses. -- (a) There shall be

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assessed and levied by the tax administrator on all beverages manufactured, rectified, blended, or

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reduced for sale in this state a tax of three dollars and thirty cents ($3.30) on every thirty-one (31)

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gallons, and a tax at a like rate for any other quantity or fractional part. On any beverage

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manufactured, rectified, blended, or reduced for sale in this state consisting in whole or in part of

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wine, whiskey, rum, gin, brandy spirits, ethyl alcohol, or other strong liquors (as distinguished

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from beer or other brewery products), the tax to be assessed and levied is as follows:

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      (1) Still wines (whether fortified or not), one dollar and forty cents ($1.40) per gallon;

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      (2) Still wines (whether fortified or not) made entirely from fruit grown in this state,

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thirty cents ($.30) per gallon;

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      (3) Sparkling wines (whether fortified or not), seventy five cents ($.75) per gallon;

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      (4) Whiskey, rum, gin, brandy spirits, cordials, and other beverages consisting in whole

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or in part of alcohol that is the product of distillation, five dollars and forty cents ($5.40) per

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gallon, except that whiskey, rum, gin, brandy spirits, cordials, and other beverages consisting in

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whole or in part of alcohol that is the product of distillation but that contains alcohol measuring

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thirty (30) proof or less, one dollar and ten cents ($1.10) per gallon;

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      (5) Ethyl alcohol to be used for beverage purposes, seven dollars and fifty cents ($7.50)

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per gallon; and

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      (6) Ethyl alcohol to be used for nonbeverage purposes, eight cents ($.08) per gallon.

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      (b) Sacramental wines are not subject to any tax if sold directly to a member of the

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clergy for use by the purchaser or his or her congregation for sacramental or other religious

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purposes.

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      (c) A brewer who brews beer in this state that is actively and directly owned, managed,

 

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and operated by an authorized legal entity that has owned, managed, and operated a brewery in

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this state for at least twelve (12) consecutive months, shall receive a tax exemption on the first

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one hundred thousand (100,000) barrels of beer that it produces and distributes in this state in any

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calendar year. A barrel of beer is thirty one (31) gallons.

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     (d) A distiller who distills spirits in this state that is actively and directly owned,

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managed, and operated by an authorized legal entity that has owned, managed, and operated a

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distillery in this state for at least twelve (12) consecutive months, shall receive a tax exemption on

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the first fifty thousand (50,000) gallons of distilled spirits that it produces and distributes in this

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state in any calendar year.

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     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO ALCOHOLIC BEVERAGES -- MANUFACTURING AND WHOLESALE

LICENSES

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     This act would provide that a distillery producing more than fifty thousand (50,000)

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gallons or more of product would pay a licensing fee of three thousand dollars ($3,000) but one

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that produces less than fifty thousand (50,000) gallons per year would pay a licensing fee of five

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hundred dollars ($500) per year. It would also grant a tax exemption on the first fifty thousand

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(50,000) gallons of distilled spirits produced and distributed in this state to any distillery that has

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been owned and operated in this state for at least twelve (12) consecutive months.

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     This act would take effect upon passage.

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LC003372

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