BILL REQ. #:  S-2743.1 

Read first time 04/28/13.   Referred to Committee on Ways & Means.

     AN ACT Relating to funding and requiring the use of distributions from the additional tax on beer and strong beer for improving impaired driving safety and enforcement; and amending RCW 66.24.290 and 46.68.260.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1   RCW 66.24.290 and 2010 1st sp.s. c 23 s 1301 are each amended to read as follows:
     (1) Any microbrewer or domestic brewery or beer distributor licensed under this title may sell and deliver beer and strong beer to holders of authorized licenses direct, but to no other person, other than the board. Any certificate of approval holder authorized to act as a distributor under RCW 66.24.270 ((shall)) must pay the taxes imposed by this section.
     (a) Every such brewery or beer distributor ((shall)) must report all sales to the board monthly, pursuant to the regulations, and ((shall)) must pay to the board as an added tax for the privilege of manufacturing and selling the beer and strong beer within the state a tax of one dollar and 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, including strong beer, ((shall)) must pay a tax computed in gallons at the rate of one dollar and thirty cents per barrel of thirty-one gallons.
     (b) Any brewery or beer distributor 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 and strong beer ((shall)) must be sold by breweries and distributors in sealed barrels or packages.
     (c) The moneys collected under this subsection ((shall)) must be distributed as follows: (i) Three-tenths of a percent ((shall)) must be distributed to border areas under RCW 66.08.195; and (ii) of the remaining moneys: (A) Twenty percent ((shall)) must be distributed to counties in the same manner as under RCW 66.08.200; and (B) eighty percent ((shall)) must be distributed to incorporated cities and towns in the same manner as under RCW 66.08.210.
     (d) Any licensed retailer authorized to purchase beer from a certificate of approval holder with a direct shipment endorsement or a brewery or microbrewery ((shall)) must make monthly reports to the liquor control board on beer purchased during the preceding calendar month in the manner and upon such forms as may be prescribed by the board.
     (2) An additional tax is imposed on all beer and strong 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)) must be deposited in the state general fund by the twenty-fifth day of the following month.
     (3)(a) An additional tax is imposed on all beer and strong 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 (3) ((shall)) must be deposited in the state general fund.
     (4) An additional tax is imposed on all beer and strong beer that is subject to tax under subsection (1) of this section that is in the first sixty thousand barrels of beer and strong 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)) must be distributed to border areas under RCW 66.08.195 and the remaining moneys ((shall)) must be transferred to the state general fund.
     (5)(a) ((From June 1, 2010, through June 30, 2013,)) An additional tax is imposed on all beer and strong beer subject to tax under subsection (1) of this section. The additional tax is equal to fifteen dollars and fifty cents per barrel of thirty-one gallons.
     (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 of the federal internal revenue code, 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 ((shall)) must be deposited in the ((state general fund)) impaired driving safety account created in RCW 46.68.260.
     (6) The board may make refunds for all taxes paid on beer and strong beer exported from the state for use outside the state.
     (7) The board may require filing with the board of a bond to be approved by it, in such amount as the board may fix, securing the payment of the tax. If any licensee fails to pay the tax when due, the board may forthwith suspend or cancel his or her license until all taxes are paid.

Sec. 2   RCW 46.68.260 and 2004 c 95 s 16 are each amended to read as follows:
     The impaired driving safety account is created in the ((custody of the state treasurer)) state treasury. All receipts from fees collected under RCW 46.20.311 (1)(e)(ii), (2)(b)(ii), and (3)(b) shall be deposited according to RCW 46.68.041. Additionally, the tax imposed under RCW 66.24.290(5) must be deposited into the account. Expenditures from this account may be used only to fund projects to reduce impaired driving and to provide funding to local governments for costs associated with enforcing laws relating to driving and boating while under the influence of intoxicating liquor or any drug. The account is subject to allotment procedures under chapter 43.88 RCW. Moneys in the account may be spent only after appropriation.