Maryland 2022 Regular Session

Maryland House Bill HB867 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb0867
6	6
7	7	HOUSE BILL 867
8	8	Q7 2lr2395
9	9
10	10	By: Delegates Ebersole, Feldmark, Hill, Ruth, and P. Young
11	11	Introduced and read first time: February 7, 2022
12	12	Assigned to: Ways and Means and Economic Matters
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Alcoholic Beverage Tax – Ready–to–Drink Cocktails 2
19	19
20	20	FOR the purpose of establishing the alcoholic beverage tax rates for ready–to–drink 3
21	21	cocktails; and generally relating to alcoholic beverage taxes. 4
22	22
23	23	BY repealing and reenacting, without amendments, 5
24	24	Article – Tax – General 6
25	25	Section 5–101(a) and (g) 7
26	26	Annotated Code of Maryland 8
27	27	(2016 Replacement Volume and 2021 Supplement) 9
28	28
29	29	BY adding to 10
30	30	Article – Tax – General 11
31	31	Section 5–101(k) 12
32	32	Annotated Code of Maryland 13
33	33	(2016 Replacement Volume and 2021 Supplement) 14
34	34
35	35	BY repealing and reenacting, with amendments, 15
36	36	Article – Tax – General 16
37	37	Section 5–101(k) through (o) and 5–105 17
38	38	Annotated Code of Maryland 18
39	39	(2016 Replacement Volume and 2021 Supplement) 19
40	40
41	41	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
42	42	That the Laws of Maryland read as follows: 21
43	43
44	44	Article – Tax – General 22
45	45
46	46	5–101. 23
47	47
48	48	(a) In this title the following words have the meanings indicated. 24 2 HOUSE BILL 867
49	49
50	50
51	51
52	52	(g) (1) “Distilled spirits” means a distilled alcoholic beverage. 1
53	53
54	54	(2) “Distilled spirits” includes: 2
55	55
56	56	(i) alcohol; 3
57	57
58	58	(ii) brandy; 4
59	59
60	60	(iii) cordials; 5
61	61
62	62	(iv) gin; 6
63	63
64	64	(v) liqueur; 7
65	65
66	66	(vi) rum; 8
67	67
68	68	(vii) vodka; 9
69	69
70	70	(viii) whiskey; and 10
71	71
72	72	(ix) solutions or mixtures of distilled spirits except fortified wines. 11
73	73
74	74	(K) “READY–TO–DRINK COCKTAIL ” MEANS A BEVERAGE THAT: 12
75	75
76	76	(1) CONTAINS DISTILLED SPIRITS MIXED WITH NONALCOHO LIC 13
77	77	BEVERAGES AND MAY CO NTAIN WINE; 14
78	78
79	79	(2) IS 12% OR LESS ALCOHOL BY V OLUME; AND 15
80	80
81	81	(3) IS CONTAINED IN ORIGINAL PACKAGING CONSISTING OF A 16
82	82	METALLIC CONTAINER O R CAN THAT IS NOT MORE T HAN 12 OUNCES. 17
83	83
84	84	[(k)] (L) “Resident dealer” means a person who is required to obtain a resident 18
85	85	dealer’s permit under § 2–125 of the Alcoholic Beverages Article. 19
86	86
87	87	[(l)] (M) (1) “Retail dealer” means a person who buys an alcoholic beverage 20
88	88	for sale to a consumer. 21
89	89
90	90	(2) “Retail dealer” includes a county department of liquor control, a liquor 22
91	91	control board, or the Alcohol Beverage Services for Montgomery County that operates a 23
92	92	dispensary. 24
93	93
94	94	[(m)] (N) “Tax stamp” means a device in the design and denomination that the 25
95	95	Comptroller authorizes for the purpose of being affixed to a container of distilled spirits as 26
96	96	evidence that the alcoholic beverage tax is paid. 27 HOUSE BILL 867 3
97	97
98	98
99	99
100	100	[(n)] (O) (1) “Wholesaler” means a person who buys or imports an alcoholic 1
101	101	beverage for sale to another person for resale. 2
102	102
103	103	(2) “Wholesaler” includes a county department of liquor control, a liquor 3
104	104	control board, or the Alcohol Beverage Services for Montgomery County that operates a 4
105	105	wholesale dispensary. 5
106	106
107	107	[(o)] (P) (1) “Wine” means a fermented alcoholic beverage. 6
108	108
109	109	(2) “Wine” includes: 7
110	110
111	111	(i) carbonated, flavored, imitation, sparkling, or still wine; 8
112	112
113	113	(ii) champagne; 9
114	114
115	115	(iii) cider; 10
116	116
117	117	(iv) fortified wine; 11
118	118
119	119	(v) perry; 12
120	120
121	121	(vi) sake; and 13
122	122
123	123	(vii) vermouth. 14
124	124
125	125	5–105. 15
126	126
127	127	(a) Except as provided in PARAGRAPH (2) OF THIS SUBSECTION A ND 16
128	128	subsection (d) of this section, the alcoholic beverage tax rate for distilled spirits is: 17
129	129
130	130	(1) (I) $1.50 for each gallon or 39.63 cents for each liter; and 18
131	131
132	132	[(2)] (II) if distilled spirits contain a percentage of alcohol greater than 19
133	133	100 proof, an additional tax, for each 1 proof over 100 proof, of 1.5 cents for each gallon or 20
134	134	0.3963 cents for each liter. 21
135	135
136	136	(2) THE ALCOHOLIC BEVERAG E TAX RATE FOR READY–TO–DRINK 22
137	137	COCKTAILS IS 40 CENTS FOR EACH GALLO N OR 10.57 CENTS FOR EACH LITER . 23
138	138
139	139	(b) Except as provided in subsection (d) of this section, the alcoholic beverage tax 24
140	140	rate for wine is 40 cents for each gallon or 10.57 cents for each liter. 25
141	141
142	142	(c) Except as provided in subsection (d) of this section, the alcoholic beverage tax 26
143	143	rate on beer and mead is 9 cents for each gallon or 2.3778 cents for each liter. 27
144	144	4 HOUSE BILL 867
145	145
146	146
147	147	(d) The tax imposed under § 5–102(b) of this subtitle shall equal the amount that 1
148	148	the discriminating jurisdiction charges a Maryland licensee or permit holder. 2
149	149
150	150	(e) The revenue generated from the tax imposed under subsection (b) of this 3
151	151	section on wine produced at wineries licensed under the Alcoholic Beverages Article shall 4
152	152	be distributed to the Maryland Wine and Grape Promotion Fund under § 2–1102 of the 5
153	153	Agriculture Article. 6
154	154
155	155	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 7
156	156	1, 2022. 8
157	157