SB-0506, As Passed Senate, November 7, 2013

SUBSTITUTE FOR

SENATE BILL NO. 506

     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.

     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. 507.

     (d) Senate Bill No. 650.

     (e) Senate Bill No. 651.

     (f) House Bill No. 4277.

     (g) House Bill No. 4709.

     (h) House Bill No. 4710.

     (i) House Bill No. 4711.