HB496: increasing the beer tax.

HB 496-FN-A - AS INTRODUCED

2017 SESSION

17-0439

09/03

HOUSE BILL 496-FN-A

AN ACT increasing the beer tax.

SPONSORS: Rep. Theberge, Coos 3

COMMITTEE: Ways and Means

ANALYSIS

This bill increases the beer tax.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

17-0439

09/03

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Seventeen

AN ACT increasing the beer tax.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Beer Tax Increased. Amend RSA 178:26, I to read as follows:

I. In addition to the annual license fees provided in this chapter, a fee of [$.30] $.50 for each gallon of beverage sold or transferred for retail sale or to the public shall be required for licenses issued to wholesale distributors, beverage manufacturers, and brew pubs; provided, however, that if beverage container mandatory deposit legislation is enacted, such fee shall be $.18 per gallon as of the effective date of such legislation. For failure to pay any part of the fees provided or under this section when due, 10 percent of such fees shall be added and collected by the commission from the licensee.

2 Beer Festival Licenses; Beer Tax Increased. Amend RSA 178:30, V to read as follows:

V. Beverages registered with the commission under paragraph IV shall be purchased by the holder of the license. Additionally, fees of [$.30] $.50 per gallon of beverages or specialty beer purchased under this paragraph shall be paid to the commission by the licensee within 10 business days of the expiration of the license. Payment shall be accompanied by any forms and documentation required by the commission.

3 Effective Date. This act shall take effect July 1, 2017.

LBAO 17-0439

12/21/16

HB 496-FN-A- FISCAL NOTE

as introduced

AN ACT increasing the beer tax.

FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None

Estimated Increase / (Decrease)

STATE:

FY 2018

FY 2019

FY 2020

FY 2021

Appropriation

$0

$0

$0

$0

Revenue

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Expenditures

$0

$0

$0

$0

Funding Source:

[ X ] General [ ] Education [ ] Highway [ ] Other

METHODOLOGY:

This bill increases the tax applied to each gallon of beer sold or transferred, pursuant to RSA 178:26, from $0.30 to $0.50. The Liquor Commission states that the number of gallons of beer sold in New Hampshire in FY 2016 was 42,833,566. The table below includes the estimated impact on revenue this bill would have in future years assuming the number of gallons sold remains constant:

Number of Gallons Sold in FY 2016*

42,833,566

Existing Beer Tax Rate per Gallon

$0.30

FY 2016 Beer Tax Revenue*

$12,850,070

Proposed Beer Tax Rate per Gallon

$0.50

Proposed Bill Beer Tax Revenue

$21,416,783

Net Impact on State Revenue Increase/(Decrease)

$8,566,713

Note: * This data was provided by the New Hampshire Liquor Commission.

AGENCIES CONTACTED:

New Hampshire Liquor Commission