EXPLANATION: CAPITALS INDICATE MATTER ADDE D TO EXISTING LAW .
[Brackets] indicate matter deleted from existing law.
*hb0663*
HOUSE BILL 663
Q7 4lr2624
HB 867/22 – W&M & ECM
By: Delegate Ebersole
Introduced and read first time: January 25, 2024
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
(2022 Replacement Volume and 2023 Supplement) 9
BY adding to 10
Article – Tax – General 11
Section 5–101(k) 12
Annotated Code of Maryland 13
(2022 Replacement Volume and 2023 Supplement) 14
BY repealing and reenacting, with amendments, 15
Article – Tax – General 16
Section 5–101(k) through (n) and 5–105 17
Annotated Code of Maryland 18
(2022 Replacement Volume and 2023 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 663
(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 THA T: 12
(1) CONTAINS DISTILLED S PIRITS MIXED WITH NO NALCOHOLIC 13
BEVERAGES AND MAY CO NTAIN WINE; 14
(2) IS 12% OR LESS ALCOHOL BY V OLUME; AND 15
(3) IS CONTAINED IN ORIG INAL PACKAGING CONSI STING OF A 16
METALLIC CONTAINER O R CAN THAT IS NOT MO RE THAN 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) (1) “Wholesaler” means a person who buys or imports an alcoholic 25
beverage for sale to another person for resale. 26
HOUSE BILL 663 3
(2) “Wholesaler” includes a county department of liquor control, a liquor 1
control board, or the Alcohol Beverage Services for Montgomery County that operates a 2
wholesale dispensary. 3
[(n)] (O) (1) “Wine” means a fermented alcoholic beverage. 4
(2) “Wine” includes: 5
(i) carbonated, flavored, imitation, sparkling, or still wine; 6
(ii) champagne; 7
(iii) cider; 8
(iv) fortified wine; 9
(v) perry; 10
(vi) sake; and 11
(vii) vermouth. 12
5–105. 13
(a) Except as provided in PARAGRAPH (2) OF THIS SUBSECTION A ND 14
subsection (d) of this section, the alcoholic beverage tax rate for distilled spirits is: 15
(1) (I) $1.50 for each gallon or 39.63 cents for each liter; and 16
[(2)] (II) if distilled spirits contain a percentage of alcohol greater than 17
100 proof, an additional tax, for each 1 proof over 100 proof, of 1.5 cents for each gallon or 18
0.3963 cents for each liter. 19
(2) THE ALCOHOLIC BEVERAG E TAX RATE FOR READY –TO–DRINK 20
COCKTAILS IS 40 CENTS FOR EACH GALLO N OR 10.57 CENTS FOR EACH LITER . 21
(b) Except as provided in subsection (d) of this section, the alcoholic beverage tax 22
rate for wine is 40 cents for each gallon or 10.57 cents for each liter. 23
(c) Except as provided in subsection (d) of this section, the alcoholic beverage tax 24
rate on beer and mead is 9 cents for each gallon or 2.3778 cents for each liter. 25
(d) The tax imposed under § 5–102(b) of this subtitle shall equal the amount that 26
the discriminating jurisdiction charges a Maryland licensee or permit holder. 27
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 28 4 HOUSE BILL 663
1, 2024. 1