GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

H	1 

HOUSE BILL 2183

Short Title:  5¢ Beer Tax Increase.	(Public)
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Sponsors: Representatives McLaughlin; Barnhill, Easterling, B. Ethridge, Flaherty, Foster, Gardner, Gist, Lilley, Lutz, and Privette.
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Referred to:  Finance.
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May 31, 1990

A BILL TO BE ENTITLED
AN ACT TO INCREASE THE EXCISE TAX ON BEER BY FIVE CENTS FOR EACH TWELVE OUNCES.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-113.80(a) reads as rewritten:
"(a)	Beer.– An excise tax is levied on the sale of malt beverages at the rate of:
(1)	One hundred one and seven-tenths cents (101.7¢) per gallon on malt beverages in barrels holding at least seven and three-fourths gallons; and
(2)	One hundred six and seven-tenths cents (106.7¢) per gallon on malt beverages in cans, bottles, barrels, or other containers holding less than seven and three-fourths gallons."
Sec. 2.  G.S. 105-113.82 reads as rewritten:
"§ 105-113.82.  Distribution of part of beer and wine taxes to local governments.
(a)	Amount, Method. – The Secretary shall annually distribute the following percentages of the net amount of excise taxes collected on the sale of malt beverages and wine, less the  amount of the net proceeds distributed under G.S 105-113.81A, to the counties and cities in which the retail sale of these beverages is authorized:
(1)	Of the tax on malt beverages levied under G.S. 105-113.80(a), eleven and eight hundred seventy-five thousandths percent (11.875%);
(2)	Of the tax on unfortified wine levied under G.S. 105-113.80(b), sixty-two percent (62%); and
(3)	Of the tax on fortified wine levied under G.S. 105-113.80(b), twenty-two percent (22%).
If malt beverages, unfortified wine, or fortified wine may be licensed to be sold at retail in both a county and a city located in the county, both the county and city shall receive a portion of the amount of excise tax to be distributed, that portion to be determined on the basis of population. If one of these beverages may be licensed to be sold at retail in a city located in a county in which the sale of the beverage is otherwise prohibited, only the city shall receive a portion of the amount of excise tax to be distributed, that portion to be determined on the basis of population. The amounts to be distributed under subdivisions (1), (2), and (3) shall be computed separately.
(b)	Reduction in Amount Distributed. – Where the sale of malt beverages, unfortified wine, or fortified wine is prohibited in a defined area of a city or county in which the sale of the beverage is authorized, the amount otherwise distributable to the city or county on the basis of population under subsection (a) shall be reduced in the same ratio that the area of the defined area bears to the total area of the city or county, unless the defined area is a city. If the defined area in a county is a city, the reduction in the amount otherwise distributable to the county under subsection (a) shall be based on population instead of area. All reductions shall be retained by the State.
(c)	Exception. – Notwithstanding subsection (a), in a county in which ABC stores have been established by petition, revenue shall be distributed as though the entire county had approved the retail sale of a beverage whose retail sale is authorized in part of the county.
(d)	Time. – The distribution shall be made within 60 days after September 30 of each year and shall be based on collections during the preceding 12-month period ending September 30.
(e)	Population Estimates. – To determine the population of a city or county for purposes of the distribution required by this section, the Secretary shall use the most recent annual estimate of population certified by the State Budget Officer.
(f)	City Defined. – As used in this section, the term ‘city' means a city as defined in G.S. 153A-1(1) or an urban service district defined by the governing body of a consolidated city-county.
(g)	Use of Funds. – Funds distributed to a county or city under this section may be used for any public purpose."
Sec. 3.  This act shall become effective July 1, 1990.