EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0867*
HOUSE BILL 867
Q7 2lr2395
By: Delegates Ebersole, Feldmark, Hill, Ruth, and P. Young
Introduced and read first time: February 7, 2022
Assigned to: Ways and Means and Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Alcoholic Beverage Tax – Ready–to–Drink Cocktails 2
FOR the purpose of establishing the alcoholic beverage tax rates for ready–to–drink 3
cocktails; and generally relating to alcoholic beverage taxes. 4
BY repealing and reenacting, without amendments, 5
Article – Tax – General 6
Section 5–101(a) and (g) 7
Annotated Code of Maryland 8
(2016 Replacement Volume and 2021 Supplement) 9
BY adding to 10
Article – Tax – General 11
Section 5–101(k) 12
Annotated Code of Maryland 13
(2016 Replacement Volume and 2021 Supplement) 14
BY repealing and reenacting, with amendments, 15
Article – Tax – General 16
Section 5–101(k) through (o) and 5–105 17
Annotated Code of Maryland 18
(2016 Replacement Volume and 2021 Supplement) 19
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
That the Laws of Maryland read as follows: 21
Article – Tax – General 22
5–101. 23
(a) In this title the following words have the meanings indicated. 24 2 HOUSE BILL 867
(g) (1) “Distilled spirits” means a distilled alcoholic beverage. 1
(2) “Distilled spirits” includes: 2
(i) alcohol; 3
(ii) brandy; 4
(iii) cordials; 5
(iv) gin; 6
(v) liqueur; 7
(vi) rum; 8
(vii) vodka; 9
(viii) whiskey; and 10
(ix) solutions or mixtures of distilled spirits except fortified wines. 11
(K) “READY–TO–DRINK COCKTAIL ” MEANS A BEVERAGE THAT: 12
(1) CONTAINS DISTILLED SPIRITS MIXED WITH NONALCOHO LIC 13
BEVERAGES AND MAY CO NTAIN WINE; 14
(2) IS 12% OR LESS ALCOHOL BY V OLUME; AND 15
(3) IS CONTAINED IN ORIGINAL PACKAGING CONSISTING OF A 16
METALLIC CONTAINER O R CAN THAT IS NOT MORE T HAN 12 OUNCES. 17
[(k)] (L) “Resident dealer” means a person who is required to obtain a resident 18
dealer’s permit under § 2–125 of the Alcoholic Beverages Article. 19
[(l)] (M) (1) “Retail dealer” means a person who buys an alcoholic beverage 20
for sale to a consumer. 21
(2) “Retail dealer” includes a county department of liquor control, a liquor 22
control board, or the Alcohol Beverage Services for Montgomery County that operates a 23
dispensary. 24
[(m)] (N) “Tax stamp” means a device in the design and denomination that the 25
Comptroller authorizes for the purpose of being affixed to a container of distilled spirits as 26
evidence that the alcoholic beverage tax is paid. 27 HOUSE BILL 867 3
[(n)] (O) (1) “Wholesaler” means a person who buys or imports an alcoholic 1
beverage for sale to another person for resale. 2
(2) “Wholesaler” includes a county department of liquor control, a liquor 3
control board, or the Alcohol Beverage Services for Montgomery County that operates a 4
wholesale dispensary. 5
[(o)] (P) (1) “Wine” means a fermented alcoholic beverage. 6
(2) “Wine” includes: 7
(i) carbonated, flavored, imitation, sparkling, or still wine; 8
(ii) champagne; 9
(iii) cider; 10
(iv) fortified wine; 11
(v) perry; 12
(vi) sake; and 13
(vii) vermouth. 14
5–105. 15
(a) Except as provided in PARAGRAPH (2) OF THIS SUBSECTION A ND 16
subsection (d) of this section, the alcoholic beverage tax rate for distilled spirits is: 17
(1) (I) $1.50 for each gallon or 39.63 cents for each liter; and 18
[(2)] (II) if distilled spirits contain a percentage of alcohol greater than 19
100 proof, an additional tax, for each 1 proof over 100 proof, of 1.5 cents for each gallon or 20
0.3963 cents for each liter. 21
(2) THE ALCOHOLIC BEVERAG E TAX RATE FOR READY–TO–DRINK 22
COCKTAILS IS 40 CENTS FOR EACH GALLO N OR 10.57 CENTS FOR EACH LITER . 23
(b) Except as provided in subsection (d) of this section, the alcoholic beverage tax 24
rate for wine is 40 cents for each gallon or 10.57 cents for each liter. 25
(c) Except as provided in subsection (d) of this section, the alcoholic beverage tax 26
rate on beer and mead is 9 cents for each gallon or 2.3778 cents for each liter. 27
4 HOUSE BILL 867
(d) The tax imposed under § 5–102(b) of this subtitle shall equal the amount that 1
the discriminating jurisdiction charges a Maryland licensee or permit holder. 2
(e) The revenue generated from the tax imposed under subsection (b) of this 3
section on wine produced at wineries licensed under the Alcoholic Beverages Article shall 4
be distributed to the Maryland Wine and Grape Promotion Fund under § 2–1102 of the 5
Agriculture Article. 6
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 7
1, 2022. 8