GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

H	1 

HOUSE BILL 1142

Short Title:  Raise Beer and Cigarette Tax.	(Public)
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Sponsors: Representatives Barnes; Gottovi and Ligon.
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Referred to:  Finance.
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May 1, 1991

A BILL TO BE ENTITLED
AN ACT TO INCREASE THE EXCISE TAXES ON BEER AND CIGARETTES AND TO PROVIDE THAT THE ADDITIONAL REVENUE GENERATED BY THESE TAX INCREASES MAY BE APPROPRIATED ONLY FOR EDUCATION PURPOSES.
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)	Fifty-nine and six one-hundredths cents (59.06¢) per gallon on malt beverages in barrels holding at least seven and three-fourths gallons; and
	(2) 	Sixty-four and five one-hundredths cents (64.05¢) 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(a) and the catch line of G.S. 105-113.82 read as rewritten:
"§ 105-113.82.  Appropriation to local governments of amount equal to part of beer and wine taxes.
(a)	Amount, Method. – An amount equal to the following percentages of the net amount of excise taxes collected, during the period that begins the preceding October 1 and ends September 30, on the sale of malt beverages and wine, less the amount of the net proceeds credited to the Department of Agriculture under G.S 105-113.81A, is annually appropriated from the General Fund 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), nineteen and eight-tenths percent (19.8%);
(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 appropriated, 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 appropriated, that portion to be determined on the basis of population. The amount of the appropriation to be distributed under subdivisions (1), (2), and (3) shall be computed separately."
Sec. 3.  G.S. 105-113.85 reads as rewritten:
"§ 105-113.85. Discount.
Each wholesaler or importer who remits the excise taxes on malt beverages or wine may deduct from the amount payable by him a discount of three and three-tenths percent (3.3%). This discount covers losses due to spoilage and breakage, expenses incurred in preparing the records and reports required by this Article, and the expense of furnishing a bond. No discount is allowed on taxpaid beverages given as free goods for advertising."
Sec. 4.  G.S. 105-113.5 reads as rewritten:
"§ 105-113.5. Privilege tax levied.
In addition to all other taxes and fees, a tax is hereby levied upon the sale or possession for sale within this State, by distributors, of all cigarettes at the rate of one and one-quarter mill per individual cigarette.
The tax hereby levied shall not apply to free distribution of sample cigarettes in packages containing five or fewer cigarettes nor to any package of cigarettes customarily donated free of charge by manufacturers of cigarettes to employees in factories where cigarettes are manufactured in this State where such packages of cigarettes are not taxed by the federal government."
Sec. 5.  The purpose of the additional taxes levied in this act is to provide revenue for education. The additional revenue generated by this act may be appropriated annually from the General Fund only for public schools, community colleges, and The University of North Carolina System.
Sec. 6.  This act becomes effective July 1, 1991.