HOUSE BILL REPORT

                  SB 6297

             As Reported By House Committee On:

                      Commerce & Labor

Title:  An act relating to eliminating the requirement for revenue stamps on beer packages and containers.

Brief Description:  Eliminating the requirement for revenue stamps on beer packages and containers.

Sponsors:  Senators Moore, Prentice and Newhouse; by request of Liquor Control Board.

Brief History:

  Reported by House Committee on:

Commerce & Labor, February 23, 1994, DP.

HOUSE COMMITTEE ON COMMERCE & LABOR

Majority Report:  Do pass.  Signed by 9 members:  Representatives Heavey, Chair; G. Cole, Vice Chair; Lisk, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; Conway; Horn; King; Springer and Veloria.

Staff:  Jim Kelley (786-7166).

Background:  Beer manufacturers are required to pay a state liquor tax based on the amount of beer produced and sold in this state.  In the past, manufacturers were required to purchase revenue stamps from the Liquor Control Board that were affixed to every barrel or package of beer to signify that the appropriate liquor taxes had been paid by the manufacturer.  The Liquor Control Board has established a computerized method for assuring that beer manufacturers pay the appropriate tax, making the old system utilizing revenue stamps unnecessary.

Summary of Bill:  The statutory language requiring beer manufacturers to purchase and affix revenue stamps to each barrel or package of beer is deleted.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  This bill removes unnecessary and antiquated language from the liquor code.  The board's current method of tracking the taxes is much more efficient than using stamps.

Testimony Against:  None.

Witnesses:  (In favor) Carter Mitchell, Liquor Control Board.