LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6921 NOTE PREPARED: Jan 3, 2024
BILL NUMBER: SB 204 BILL AMENDED:
SUBJECT: Direct Beer Seller's Permits.
FIRST AUTHOR: Sen. Alting BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill establishes a direct beer seller's permit that allows a brewer to sell and
ship beer directly to a consumer.
Effective Date: July 1, 2024.
Explanation of State Expenditures: Alcohol and Tobacco Commission (ATC): The ATC’s workload and
expenditures would increase to issue permits, update forms, and make other changes to implement the bill’s
provisions. The increase will depend on the number of applicants for direct beer seller’s permits.
Penalty Provision: A direct beer seller that knowingly or intentionally sells or ships beer directly to a
consumer without a valid permit or knowingly or intentionally ships beer to a consumer under age 21
commits a Level 6 felony if the seller has at least two prior violations. A Level 6 felony is punishable by a
prison term ranging from 6 to 30 months, with an advisory sentence of 1 year. The sentence depends on
mitigating and aggravating circumstances. Assuming offenders can be housed in existing facilities with no
additional staff, the marginal cost for medical care, food, and clothing is approximately $4,456 annually, or
$12.21 daily, per prisoner. However, any additional expenditures are likely to be small.
Explanation of State Revenues: Direct Beer Permit: The bill creates a direct beer seller’s permit to allow
a consumer to buy beer directly from a brewer. This new permit will increase permit fee revenue by an
indeterminable amount. The direct beer seller’s permit will have an annual fee of $150.
Revenue from the direct beer seller’s permit fee will be deposited in the General Fund, of which, 66%
remains in the General Fund and 34% is distributed to the Enforcement and Administration Fund.
SB 204 1 Alcoholic Beverage Sales: To the extent that alcoholic beverage sales increase as a result of consumers
directly purchasing beer from a direct beer seller, Alcoholic Beverage Tax and Sales Tax revenue could
potentially increase. However, any increase would be small.
The Alcoholic Beverage Tax rate on beer is equal to $0.115 per gallon and is distributed to the following
funds: General Fund ($0.04), State Construction Fund ($0.0375), Enforcement and Administration Fund
($0.0175), and Addiction Services Fund ($0.02). Fifty percent of the General Fund distribution is allocated
to cities and towns according to a formula based on population.
Sales Tax revenue is deposited in the General Fund (99.838%), Commuter Rail Service Fund (0.131%), and
Industrial Rail Service Fund (0.031%).
Penalty Provision: It is a Class A infraction if a direct beer seller operates with no permit or sells to a
consumer who is under 21, does not have an Indiana address, or the consumer intends to resell the beer. If
the violation is done knowingly or intentionally and the seller has one prior unrelated conviction or judgment
within 10 years, the violation is a Class A misdemeanor. If the seller has two prior unrelated convictions or
judgments, it is a Level 6 felony. As a result, revenue from civil penalties imposed by the ATC may increase
to the extent of violations made by a direct beer seller permit. The ATC may collect a maximum amount of
$1,000 for each violation by a direct beer seller permit. Revenue is deposited into Enforcement and
Administration Fund.
If additional court cases occur and fines are collected, revenue to both the Common School Fund and the
state General Fund would increase. The maximum fine for a Class A misdemeanor is $5,000 and Level 6
felony is $10,000. Criminal fines are deposited in the Common School Fund. The total fee revenue per case
would range between $113 and $135. The amount of court fees deposited will vary depending on whether
the case is filed in a court of record or a municipal court. The maximum judgment for a Class A infraction
is $10,000, which is deposited in the state General Fund. The total court fee revenue per case would range
between $85.50 and $103. The following linked document describes the fees and distribution of the revenue:
Court fees imposed in criminal, juvenile, and civil violation cases.
Explanation of Local Expenditures: Penalty Provision: If more defendants are detained in county jails
prior to their court hearings, local expenditures for jail operations may increase. However, any additional
expenditures would likely be small.
Explanation of Local Revenues: Alcoholic Beverage Sales: To the extent that Alcoholic Beverage Tax
revenue increases, distributions to cities and towns could increase. [See Explanation of State Revenues.]
Penalty Provision: If additional court actions occur and a judgement is entered, more revenue will be
collected by certain local units. If the case is filed in a court of record, the county will receive $33.90 and
qualifying municipalities will receive a share of $2.10. If the case is filed in a municipal court, the county
receives $20, and the municipality will receive $33.50. The following linked document describes the fees
and distribution of the revenue: Court fees imposed in criminal, juvenile, and civil violation cases.
State Agencies Affected: Alcohol and Tobacco Commission, Department of Correction.
Local Agencies Affected: Cities and towns, Trial courts, local law enforcement agencies.
Information Sources: Legislative Services Agency. Indiana Handbook of Taxes, Revenues, and
SB 204 2 Appropriations, FY 2023. Indiana Supreme Court, Indiana Trial Court Fee Manual; Department of
Correction.
Fiscal Analyst: Nate Bodnar, 317-234-9476.
SB 204 3