SB-0507, As Passed Senate, November 7, 2013

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) Subject to the limitation provided in subsection (8), the

tax levied under subsections (1) and (2) shall be collected as

follows:

     (a) If the wine is manufactured in this state, the tax shall

be paid by the wine maker who manufactured the wine unless the wine

maker designates the wholesaler to pay the tax on behalf of the

wine maker.

     (b) If the wine is manufactured outside this state, the tax

shall be paid by the wholesaler assigned to distribute that wine.

     (6) Subject to the limitation provided in subsection (8), the

tax levied under subsection (4) shall be collected as follows:

     (a) If the mixed spirit drink is manufactured in this state,

the tax shall be paid by the manufacturer of the mixed spirit drink

unless the manufacturer designates the wholesaler to pay the tax on

behalf of the manufacturer.

     (b) 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 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 manufacturer of the wine or mixed

spirit drink is only required to pay the tax on the number of

liters actually sold by the wholesaler.

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

collection of the tax levied in this section. However, the

commission shall not require that the tax to 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.

     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) Senate Bill No. 651.

     (f) House Bill No. 4277.

     (g) House Bill No. 4709.

     (h) House Bill No. 4710.

     (i) House Bill No. 4711.