A BILL TO BE ENTITLED
AN ACT to make the excise tax rate levied on hard cider the same as the excise tax rate levied on malt beverages.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑113.68(a) reads as rewritten:
"(a)	Definitions. – The following definitions apply in this Article:
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(5a)	Hard cider. – A wine that meets all of the following requirements:
a.	Contains not more than sixty‑four hundredths (0.64) of a gram of carbon dioxide per hundred milliliters of wine.
b.	Is derived primarily from (i) apples or pears or (ii) water and apple juice concentrate or pear juice concentrate.
c.	Contains no fruit product or fruit flavoring other than what is authorized under sub‑subdivision b. of this subdivision.
d.	Contains at least one‑half of one percent (0.50%) alcohol by volume and less than eight and one‑half percent (8.50%) alcohol by volume.
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SECTION 2.  G.S. 105‑113.80 reads as rewritten:
"§ 105‑113.80.  Excise taxes on beer, wine, and liquor.
(a)	Beer and Hard Cider. – An excise tax of sixty‑one and seventy‑one hundredths cents (61.71¢) per gallon is levied on the sale of malt beverages and hard cider.
(b)	Wine. – An excise tax of twenty‑six and thirty‑four hundredths cents (26.34¢) per liter is levied on the sale of unfortified wine, and an excise tax of twenty‑nine and thirty‑four hundredths cents (29.34¢) per liter is levied on the sale of fortified wine. For purposes of this subsection, the term "unfortified wine" does not include hard cider.
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SECTION 3.  G.S. 105‑113.82 reads as rewritten:
"§ 105‑113.82.  Distribution of part of beer and wine taxes.
(a)	Amount. – The Secretary must distribute annually a percentage of the net amount of excise taxes collected on the sale of malt beverages and wine during the preceding 12‑month period ending March 31 to the counties or cities in which the retail sale of these beverages is authorized in the entire county or city. The percentages to be distributed are as follows:
(1)	Of the tax on malt beverages and hard cider levied under G.S. 105‑113.80(a), twenty and forty‑seven hundredths percent (20.47%).
(2)	Of the tax on unfortified wine levied under G.S. 105‑113.80(b), forty‑nine and forty‑four hundredths percent (49.44%). For purposes of this subdivision, the term "unfortified wine" does not include hard cider.
(3)	Of the tax on fortified wine levied under G.S. 105‑113.80(b), eighteen percent (18%).
(a1)	Method. – If malt beverages, hard cider, 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 receive a portion of the amount 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 receives a portion of the amount distributed, that portion to be determined on the basis of population. The amounts distributable under subsection (a) of this section must be computed separately. For purposes of this subsection, the term "unfortified wine" does not include hard cider.
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SECTION 4.  G.S. 105‑113.83(b) reads as rewritten:
"(b)	Malt Beverages, Hard Cider, and Wine. – The excise taxes on malt beverages, hard cider, and wine levied under G.S. 105‑113.80(a) and (b) are payable to the Secretary by the resident wholesaler or importer who first handles the beverages in this State. The excise taxes levied under G.S. 105‑113.80(a) or (b) on hard cider or wine shipped directly to consumers in this State pursuant to G.S. 18B‑1001.1 must be paid by the wine shipper permittee. The taxes on malt beverages, hard cider, and wine are payable only once on the same beverages. Unless otherwise provided, the tax is due on or before the 15th day of the month following the month in which the beverage is first sold or otherwise disposed of in this State by the wholesaler, importer, or wine shipper permittee. When excise taxes are paid on wine, hard cider, or malt beverages, the wholesaler or importer must submit to the Secretary verified reports on forms provided by the Secretary detailing sales records for the month for which the taxes are paid. The report must indicate the amount of excise tax due, contain the information required by the Secretary, and indicate separately any transactions to which the excise tax does not apply. A wine shipper permittee shall submit verified reports once a year on forms provided by the Secretary detailing sales records for the year the taxes are paid. The verified report is due on or before the fifteenth day of the first month of the following calendar year."
SECTION 5.  This act becomes effective October 1, 2019, and applies to hard cider sold on or after that date.