GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

H	1 

HOUSE BILL 2295

Short Title:  Raise Alcohol Taxes.	(Public)
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Sponsors: Representatives Privette; and Warner.
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Referred to:  Finance.
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June 4, 1990

A BILL TO BE ENTITLED
AN ACT TO INCREASE TAXES ON ALCOHOLIC BEVERAGES.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-113.80 reads as rewritten:
"§ 105-113.80. Excise taxes on beer, wine, and liquor.
(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.
(b)	Wine. – An excise tax of fifty-four and eight-tenths cents (54.8¢) per liter is levied on the sale of unfortified wine, and an excise tax of fifty-seven and eight-tenths cents (57.8¢) per liter is levied on the sale of fortified wine.
(c)	Liquor. – An excise tax of forty-nine and five-tenths percent (49.5%) is levied on liquor sold in ABC stores. Pursuant to G.S. 18B-804(b), the price of liquor on which this tax is computed is the distiller's price plus (i) the State ABC warehouse freight and bailment charges, and (ii) a markup for local ABC boards. This tax is in lieu of sales and use taxes; accordingly, liquor is exempt from those taxes as provided in G.S. 105-164.13(37)."
Sec. 2.  G.S. 105-113.81A reads as rewritten:
"§ 105-113.81A. Distribution of part of wine taxes attributable to North Carolina wine.
The Secretary shall on a quarterly basis credit to the Department of Agriculture thirty-six and six-tenths percent (36.6%) of the net proceeds of the excise tax collected on unfortified wine bottled in North Carolina during the previous quarter and thirty-nine and five-tenths percent (39.5%) of the net proceeds of the excise tax collected on fortified wine bottled in North Carolina during the previous quarter, provided that the amount credited to the Department of Agriculture under this section shall not exceed ninety thousand dollars ($90,000) per fiscal year.  The Department of Agriculture shall allocate the funds received under this section to the North Carolina Grape Growers Council to be used to promote the North Carolina grape and wine industry and to contract for research and development services to improve viticultural and enological practices in North Carolina.  Any funds credited to the Department of Agriculture under this section that are not expended by June 30 of any fiscal year may not revert to the General Fund, but shall remain available to the Department for the uses set forth in this section."
Sec. 3.  G.S. 105-113.82(a) reads as rewritten:
"(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 one-thousandths percent (11.875%);
(2) 	Of the tax on unfortified wine levied under G.S. 105-113.80(b), twenty-three and sixty-seven one-hundredths percent (23.67%); and
(3) 	Of the tax on fortified wine levied under G.S. 105-113.80(b), nine and twelve one-hundredths percent (9.12%).
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."
Sec. 4.  This act shall become effective October 1, 1990.