SB-0507, As Passed House, March 12, 2014

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 507

     A bill to amend 1998 PA 58, entitled

"Michigan liquor control code of 1998,"

by amending section 301 (MCL 436.1301).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 301. (1) The commission shall levy and collect on all

wines containing 16% or less of alcohol by volume sold in this

state a tax at the rate of 13.5 cents per liter if sold in bulk and

in a like ratio if sold in smaller quantities.

     (2) The commission shall levy and collect on all wines

containing more than 16% of alcohol by volume sold in this state a

tax at the rate of 20 cents per liter if sold in bulk and in a like

ratio if sold in smaller quantities.

     (3) All sacramental wines are nontaxable when used by

churches. Sacramental wines may be imported. The commission shall

not impose restrictions on importations of wine for sacramental

purposes but may promulgate rules as will to prevent any abuses

which that result from the importations. A wholesaler or an

outstate seller of wine may sell sacramental wine directly to a

church for sacramental purposes.

     (4) The commission shall levy and collect on all mixed spirit

drink sold in this state a tax at the rate of 48 cents per liter if

sold in bulk or a like ratio if sold in smaller quantities.

     (5) Beginning on and after February 1, 2015, if the wine is

manufactured in this state the tax shall be paid by the wine maker

who manufactured the wine or if the wine is manufactured outside

this state the tax shall be paid by the wholesaler assigned to

distribute that wine.

     (6) Beginning on and after February 1, 2015, if the mixed

spirit drink is manufactured in this state the tax shall be paid by

the manufacturer of the mixed spirit drink or if the mixed spirit

drink is manufactured outside this state the tax shall be paid by

the wholesaler assigned to distribute that mixed spirit drink.

(7) (5) On approval by the commission, the corporation and

securities bureau department of licensing and regulatory affairs

shall incorporate a limited number of farm mutual cooperative

wineries as the commission determines to be beneficial to the

Michigan grape and fruit industry. These wineries shall be licensed

under this act and the payment of 1 license fee annually by the

corporation shall authorize wine making on the premises of the

corporation and also on the premises of the grape and fruit growing

farmers who are members of or stockholders in the corporation. Upon

incorporation of a farmers' cooperative corporation as provided for

in this section, the members of or the stockholders in the

corporation shall be certified to be Michigan grape and fruit

growing farmers. Wine making by cooperative corporations on farm

premises is allowed, but all sales of the wine shall be made by the

corporation and from the corporation premises.

     (8) A wine maker or manufacturer of a mixed spirit drink may

designate a wholesaler to pay the tax on behalf of the wine maker

or manufacturer, respectively. If a wine maker or manufacturer

designates a wholesaler to pay the tax on its behalf, that wine

maker or manufacturer shall notify the commission of the

designation and provide the commission with a copy of its report of

wine premises operations that it filed with the alcohol and tobacco

tax and trade bureau of the United States department of treasury

for each calendar year. A wholesaler that is responsible for the

payment of the tax under this section or that is designated to pay

the tax under this section on behalf of the wine maker or

manufacturer of the mixed spirit drink is only required to pay the

tax on the number of liters actually sold by the wholesaler to

licensed retailers.

     (9) The commission shall establish by rule a method for the

collection of the tax levied in this section and reporting

requirements for wholesalers, wine makers, outstate sellers of

mixed spirit drink, and outstate sellers of wine to verify the

remission of taxes to this state. The commission shall not require

that the tax be paid in less than monthly intervals. The rules

shall be promulgated pursuant to the administrative procedures act

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

     Enacting section 1. This amendatory act does not take effect

unless all of the following bills of the 97th Legislature are

enacted into law:

     (a) Senate Bill No. 504.

     (b) Senate Bill No. 505.

     (c) Senate Bill No. 506.

     (d) Senate Bill No. 650.

     (e) House Bill No. 4277.

     (f) House Bill No. 4709.

     (g) House Bill No. 4710.

     (h) House Bill No. 4711.