AN
ACT Relating to offsetting an increase in the beer tax for the health care
services account with a corresponding decrease in other beer taxes; amending
RCW 66.24.290, 69.50.520, 66.08.180, and 66.08.196; providing an effective
date; and declaring an emergency.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
66.24.290 and 1995 c 232 s 4 are each amended to read as follows:
(1)
Any brewer or beer wholesaler licensed under this title may sell and deliver
beer to holders of authorized licenses direct, but to no other person, other
than the board; and every such brewer or beer wholesaler shall report all sales
to the board monthly, pursuant to the regulations, and shall pay to the board
as an added tax for the privilege of manufacturing and selling the beer within
the state a tax of ((two)) one dollar((s)) and ((sixty))
thirty cents per barrel of thirty-one gallons on sales to licensees
within the state and on sales to licensees within the state of bottled and
canned beer shall pay a tax computed in gallons at the rate of ((two)) one
dollar((s)) and ((sixty)) thirty cents per barrel of
thirty-one gallons. Any brewer or beer wholesaler whose applicable tax payment
is not postmarked by the twentieth day following the month of sale will be
assessed a penalty at the rate of two percent per month or fraction thereof.
Beer shall be sold by brewers and wholesalers in sealed barrels or packages. The
moneys collected under this subsection shall be distributed as follows: (a)
Three-tenths of a percent shall be distributed to border areas under RCW
66.08.195; and (b) of the remaining moneys: (i) Twenty percent shall be
distributed to counties in the same manner as under RCW 66.08.200; and (ii) eighty
percent shall be distributed to incorporated cities and towns in the same
manner as under RCW 66.08.210.
(2)
((An additional tax is imposed equal to seven percent multiplied by the tax
payable under subsection (1) of this section. All revenues collected during
any month from this additional tax shall be transferred to the state general
fund by the twenty-fifth day of the following month.
(3))) An
additional tax is imposed on all beer subject to tax under subsection (1) of
this section. The additional tax is equal to two dollars per barrel of
thirty-one gallons. All revenues collected during any month from this
additional tax shall be deposited in the violence reduction and drug
enforcement account under RCW 69.50.520 by the twenty-fifth day of the following
month.
(((4)))
(3)(a) An additional tax is imposed on all beer subject to tax under
subsection (1) of this section. The additional tax is equal to ninety-six
cents per barrel of thirty-one gallons through June 30, 1995, two dollars and
thirty-nine cents per barrel of thirty-one gallons for the period July 1, 1995,
through June 30, 1997, and four dollars and seventy-eight cents per barrel of
thirty-one gallons thereafter.
(b)
The additional tax imposed under this subsection does not apply to the sale of
the first sixty thousand barrels of beer each year by breweries that are
entitled to a reduced rate of tax under 26 U.S.C. Sec. 5051, as existing on
July 1, 1993, or such subsequent date as may be provided by the board by rule
consistent with the purposes of this exemption.
(c)
All revenues collected from the additional tax imposed under this subsection (((4)))
(3) shall be deposited in the health services account under RCW
43.72.900.
(((5)))
(4) An additional tax is imposed on all beer that is subject to tax under
subsection (1) of this section that is in the first sixty thousand barrels of
beer by breweries that are entitled to a reduced rate of tax under 26 U.S.C.
Sec. 5051, as existing on July 1, 1993, or such subsequent date as may be
provided by the board by rule consistent with the purposes of the exemption
under subsection (3)(b) of this section. The additional tax is equal to one
dollar and forty-eight and two-tenths cents per barrel of thirty-one gallons.
By the twenty-fifth day of the following month, three percent of the revenues
collected from this additional tax shall be distributed to border areas under
RCW 66.08.195 and the remaining moneys shall be transferred to the state general
fund.
(5)
The tax imposed under this section shall not apply to "strong beer"
as defined in this title.
Sec.
2. RCW
69.50.520 and 1995 2nd sp.s. c 18 s 919 are each amended to read as follows:
The
violence reduction and drug enforcement account is created in the state
treasury. All designated receipts from RCW 9.41.110(((7))) (8),
66.24.210(4), 66.24.290(((3))) (2), 69.50.505(h)(1),
82.08.150(5), 82.24.020(2), 82.64.020, and section 420, chapter 271, Laws of
1989 shall be deposited into the account. Expenditures from the account may be
used only for funding services and programs under chapter 271, Laws of 1989 and
chapter 7, Laws of 1994 sp. sess., including state incarceration costs. After July
1, 1997, at least seven and one-half percent of expenditures from the account
shall be used for providing grants to community networks under chapter 70.190
RCW by the family policy council.
Sec.
3. RCW
66.08.180 and 1995 c 398 s 16 are each amended to read as follows:
Except
as provided in RCW 66.24.290(1), moneys in the liquor revolving fund shall
be distributed by the board at least once every three months in accordance with
RCW 66.08.190, 66.08.200 and 66.08.210: PROVIDED, That the board shall reserve
from distribution such amount not exceeding five hundred thousand dollars as
may be necessary for the proper administration of this title.
(1)
All license fees, penalties and forfeitures derived under this act from class H
licenses or class H licensees shall every three months be disbursed by the
board as follows:
(a)
Three hundred thousand dollars per biennium, to the University of Washington
for the forensic investigations council to conduct the state toxicological
laboratory pursuant to RCW 68.50.107; and
(b)
Of the remaining funds:
(i)
6.06 percent to the University of Washington and 4.04 percent to Washington
State University for alcoholism and drug abuse research and for the
dissemination of such research; and
(ii)
89.9 percent to the general fund to be used by the department of social and
health services solely to carry out the purposes of RCW 70.96A.050;
(2)
The first fifty-five dollars per license fee provided in RCW 66.24.320 and
66.24.330 up to a maximum of one hundred fifty thousand dollars annually shall
be disbursed every three months by the board to the general fund to be used for
juvenile alcohol and drug prevention programs for kindergarten through third
grade to be administered by the superintendent of public instruction;
(3)
Twenty percent of the remaining total amount derived from license fees pursuant
to RCW 66.24.320, 66.24.330, 66.24.340, 66.24.350, 66.24.360, and 66.24.370,
shall be transferred to the general fund to be used by the department of social
and health services solely to carry out the purposes of RCW 70.96A.050; and
(4)
One-fourth cent per liter of the tax imposed by RCW 66.24.210 shall every three
months be disbursed by the board to Washington State University solely for wine
and wine grape research, extension programs related to wine and wine grape
research, and resident instruction in both wine grape production and the
processing aspects of the wine industry in accordance with RCW 28B.30.068. The
director of financial management shall prescribe suitable accounting procedures
to ensure that the funds transferred to the general fund to be used by the
department of social and health services and appropriated are separately
accounted for.
Sec.
4. RCW
66.08.196 and 1995 c 159 s 3 are each amended to read as follows:
Distribution
of funds to border areas under RCW 66.08.190 and 66.24.290 (1)(a) and (4)
shall be as follows:
(1)
Sixty-five percent of the funds shall be distributed to border areas ratably
based on border area traffic totals;
(2)
Twenty-five percent of the funds shall be distributed to border areas ratably
based on border-related crime statistics; and
(3)
Ten percent of the funds shall be distributed to border areas ratably based
upon border area per capita law enforcement spending.
Distributions
to an unincorporated area that is a point of land surrounded on three sides by
saltwater and adjacent to the Canadian border shall be made to the county in
which such an area is located and may only be spent on services provided to
that area.
NEW
SECTION. Sec. 5. This
act is necessary for the immediate preservation of the public peace, health, or
safety, or support of the state government and its existing public
institutions, and takes effect July 1, 1997.
