2017 -- H 5914

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LC002085

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

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A N   A C T

RELATING TO ALCOHOLIC BEVERAGES - TAXATION OF BEVERAGES

     

     Introduced By: Representatives Ruggiero, Canario, Edwards, Marshall, and Mendonca

     Date Introduced: March 10, 2017

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. 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.

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     (a) There shall be assessed and levied by the tax administrator on all beverages

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manufactured, rectified, blended, or reduced for sale in this state a tax of three dollars and thirty

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cents ($3.30) on every thirty-one (31) gallons, and a tax at a like rate for any other quantity or

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fractional part. On any beverage manufactured, rectified, blended, or reduced for sale in this state

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consisting, in whole or in part, of wine, whiskey, rum, gin, brandy spirits, ethyl alcohol, or other

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strong liquors (as distinguished from beer or other brewery products), the tax to be assessed and

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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 clergy

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for use by the purchaser or his or her congregation for sacramental or other religious 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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     (e) A winery who makes wine 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 winery in this

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

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thousand (50,000) gallons of wine that it produces and distributes in this state in any calendar

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year.

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     SECTION 2. 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 - TAXATION OF BEVERAGES

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     This act would exempt from the alcoholic beverage manufacturing tax the first fifty

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thousand (50,000) gallons of wine produced by a winery in this state for distribution in Rhode

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Island in any calendar year.

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     This act would take effect upon passage.

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