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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
HOUSE BILL 2684 By: Echols
AS INTRODUCED
An Act relating to alcoholic beverages; amending
Section 19, Chapter 366, O.S.L. 2016, as amended by
Section 11, Chapter 364, O.S.L. 2017 (37A O.S. Supp.
2020, Section 2-107), which relates to the wine and
spirits wholesaler license; clarifying from whom wine
or spirits wholesaler licensees may purchase or
import; requiring certain licensees to collect and
remit excise taxes on certain impo rts; expanding
exception to certain restrictions on the sales of
spirits and wine between wholesalers; amending
Section 69, Chapter 366, O.S.L. 2016, as amended by
Section 2, Chapter 113, O.S.L. 2018 (37A O.S. Supp.
2020, Section 2-157), which relates to w inery self-
distribution; modifying the manner in which taxes are
paid; amending Section 104, Chapter 366, O.S.L. 2016,
as amended by Section 13, Chapter 205, O.S.L. 2017
(37A O.S. Supp. 2020 , Section 5-101), which relates
to excise tax on alcoholic beverag es; modifying the
manner in which excise tax is paid and by whom;
amending Section 127, Chapter 366, O.S.L. 2019 (37A
O.S. Supp. 2020, Section 5 -124), which relates to a
certain required bond; modifying the applicability of
a certain bond requirement; spec ifying who is
affected by bond requirement; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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SECTION 1. AMENDATORY Section 19, Chapter 366, O.S.L.
2016, as amended by Section 1 1, Chapter 364, O.S.L. 2017 (37A O.S.
Supp. 2020, Section 2 -107), is amended to read as follows:
Section 2-107. 1. To purchase and import into this state
spirits and wines from persons authorized to sell same who are the
holders of a designating manufacturer license, nondesignating
manufacturer license or nonresident seller license, and their agents
who are the holders of manufacturer 's agent licenses; provided, it
shall be unlawful for any wholesaler to purchase any alcoholic
beverage for resale unless those alcoholic beverages are purchased
from the primary American source of supply for the brand of
alcoholic beverages sought to be resold ;
2. To purchase spirits and wines from licensed distillers,
rectifiers and winemakers in this state;
3. To purchase spirits and wines from licensed wholesalers, to
the extent set forth in subsections B and C of this section;
4. To sell in retail containers in this state to retailers,
mixed beverage, caterer, special event, public event, hotel beverage
or airline/railroad beverage licensees, spirits and wines which have
been received and unloaded at the bonded warehouse facilities of the
wholesaler before such sale ; provided, it shall be unlawful for any
wholesaler to sell any alcoholic beverages if the alcoholic
beverages have not been purchased by the wholesaler from the primary
American source of supply ;
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5. To sell to licensed wholesalers, to the extent set forth in
subsections B and C of this section, spirits and wines which have
been received and unloaded at the bonded warehouse facilities of the
wholesaler before such sale; and
6. To sell spirits and wines out of this state to qualified
persons; and
7. To collect and remit excise taxes on all alcoholic beverages
it has transported into the state .
Provided, however, s ales of spirits and wine in containers with
a capacity of less than one -twentieth (1/20) gallon by a holder of a
wholesaler license shall be in full case lots and in the original
unbroken case. Wholesalers shall be authorized to place such signs
outside their place of business as are required by Acts of Congress
and by such laws and regulations promulgated under such Acts.
B. A wholesaler may sell spirits and wine to other wholesalers
or purchase spirits and wines from other wholesalers without
complying with subsection A of this section in the case of the sale,
purchase or other transfer or acquisition of a particular brand of
wine or spirits or the entire business of a wholesaler, including
the inventory of spirits and wine.
C. A wholesaler license shal l authorize the holder thereof to:
1. Maintain not more than three (3) self -owned or leased and
self-operated bonded warehouses within this state. All invoices
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shall be stored at the principal place of business for which the
wholesaler license was grante d; and
2. Accept as payment cash, personal check, cashier 's check,
money order or electronic fund transfer from persons licensed to
purchase alcoholic beverages; provided, a wholesaler shall not be
permitted to accept payment by credit card.
SECTION 2. AMENDATORY Section 69, Chapter 366, O.S.L.
2016, as amended by Section 2, Chapter 113, O.S.L. 2018 (37A O.S.
Supp. 2020, Section 2 -157), is amended to read as follows:
Section 2-157. A. Every winemaker or small farm winery
electing to directly sell its wines to retailers, mixed beverage
licensees, beer and wine licensees, and restaurants must obtain a
winery self-distribution license and pay the applicable license fee
and shall register its products and post its prices with the sta te
in the same manner required of the holder of a nonresident seller
license.
B. Every winemaker or small farm winery electing to directly
sell its wines to retailers, mixed beverage licensees, beer and wine
licensees, and restaurants shall report all sal es to retail package
stores, mixed beverage licensees, beer and wine licensees, and
restaurants in this state to the ABLE Commission and to the Oklahoma
Tax Commission at least monthly, or in accordance with such rules as
the ABLE Commission shall promulga te and shall pay to the Tax
Commission all excise and other taxes imposed by this state upon
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such wine in the same manner required of the holder of a nonresident
seller wine and spirits wholesaler license.
C. Any self-distributing winemaker within or with out this state
who shall, in any calendar year, exceed the production volume limit
provided for in subsection B of Section 2 -105 of this title, shall
immediately notify the ABLE Commission of such fact and shall
thereafter have the option to sell the wines they produce to every
licensed wholesale distributor who desires to purchase the same, on
the same price basis and without discrimination, and shall
thereafter be allowed to sell such beverages only to such licensed
wholesale distributors or cease to sell its products in this state.
D. All winemakers who conduct business in this state shall be
prohibited from creating, forming or participating in any kind of a
cooperative or pooled transportation or distribution arrangement.
E. Any licensed winemaker or winery that sells or distributes
its wine directly to a retailer, mixed beverage licensee, beer and
wine licensee or restaurant in this state after having exceeded the
production volume limit provided for in subsection B of Section 2 -
105 of this title in a ny calendar year shall be subject to a fine of
Ten Thousand Dollars ($10,000.00). In addition, if the violation is
a second or subsequent violation, the winemaker or winery shall not
be allowed to transport wine to a retail package store or restaurant
for three (3) years from the date of the second or subsequent
violation.
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F. If Section 2 of Article XXVIIIA XXVIII-A of the Oklahoma
Constitution is ruled to be unconstitutional by a court of competent
jurisdiction, then any licensed winemaker or winery that then
continues to sell or distribute its wine directly to a retail
package store, mixed beverage licensee, beer and wine licensee or
restaurant in this state shall be subject to a fine of Ten Thousand
Dollars ($10,000.00) per violation.
SECTION 3. AMENDATORY Section 104, Chapter 366, O.S.L.
2016, as amended by Section 1 3, Chapter 205, O.S.L. 2017 (37A O.S.
Supp. 2020, Section 5 -101), is amended to read as follows:
Section 5-101. A. Except as provided in this subsection, an
excise tax is hereby levied and imposed upon all alcoholic beverages
imported or manufactured, for sale, use or distribution, or used or
possessed in this state at the following rates:
1. One Dollar and forty -seven cents ($1.47) per liter, and a
proportionate rate on fractions thereof, on each liter of spirits;
2. Nineteen cents ($0.19) per liter, and a proportionate rate
on fractions thereof, on each liter of wine;
3. Fifty-five cents ($0.55) per liter, and a proportionate rate
on fractions thereof, on each liter of sparkling wine; and
4. Twelve Dollars and fifty cents ($12.50) per barrel (thirty -
one (31) wine gallons) and a proportionate rate on portions thereof,
on each barrel of beer; provided, beer manufactured in this state
for export shall not be taxed .
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B. The excise tax levied on alcoholic beverages except beer
under subsection A of this section shall be paid as follows:
1. Payment of the excise tax levied by this section with
respect to all alcoholic beverages, other than beer, shall be made
by the person shipping the same into Oklahoma, or in the case of
direct imports from foreign countries by the importer, or in the
case of alcoholic beverages manufactured in Oklahoma by the first
seller thereof as follows:
a. the excise tax on all wine and spirit s shall be
collected and remitted by the Oklahoma wine and
spirits wholesaler who purchases the alcoholic
beverages for sale within the state, unless otherwise
provided by subparagraph b of this paragraph, and
b. the excise tax on all wine shipped directly to a
consumer by a winery maintaining a winemaker self -
distribution license pursuant to Section 2 -105 of this
title or a winery maintaining a Direct Wine Shipper 's
Permit pursuant to Section 3 -106 of this title shall
be collected and remitted by the winer y maintaining
this license or permit ; and
2. The due and payable excise tax levied by this section shall
be remitted electronically simultaneously with tax returns
electronically filed with the Oklahoma Tax Commission using
procedures prescribed by the Ta x Commission. The tax returns shall
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be made under oath by the person liable for the tax on forms
prescribed and provided by the Tax Commission and shall be
accompanied by payment of the taxes due and any additional sums due
as provided by this section. I nvoices describing all alcoholic
beverages as described in this section which are shipped into this
state or which are first sold in this state shall be delivered to
the Tax Commission immediately following shipment of liquors into
the state or delivery to the first purchaser. Tax returns and
payment of excise tax and other sums due shall be electronically
filed with the Tax Commission no later than the twentieth day of the
month immediately succeeding the month of shipment, importation or
first sale of the alcoholic beverages as provided in paragraph 1 of
this subsection.
C. For the purpose of collecting and remitting the excise tax
imposed under this section, the person liable for such tax is hereby
declared to be the agent of the state for such purposes .
D. Nothing herein shall be construed to impose an additional
excise tax on alcoholic beverages held in inventory by wholesalers
and retailers upon which the excise tax was paid prior to the
effective date of any excise tax increase.
E. The retail sale of alcoholic beverages shall be subject to
the sales tax statutes enacted by the Legislature.
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SECTION 4. AMENDATORY Section 127, Chapter 366, O.S.L.
2016, as amended by Section 3 1, Chapter 322, O.S.L. 2019 (37A O.S.
Supp. 2020, Section 5-124), is amended to read as follows:
Section 5-124. A. Every manufacturer, brewer, importer, broker
or other who sells alcoholic beverages to a wine and spirits
wholesaler, or beer distributor in Oklahoma, after having been
issued a license by the ABLE Commission, shall, before
manufacturing, purchasing or selling any alcoholic beverage within
this state, ensure that every wine and spirits wholesaler or beer
distributor that is responsible for collecting and remitting alcohol
excise taxes on behalf of the manufacturer, importer or broker has
on file with the Oklahoma Tax Commission a bond issued by a surety
company authorized to transact business in this state, in such
amount as the Tax Commission may fix, but which shall be at least
equal to the estimated amount of the tax liability of such licensee
for a three-month period, to secure the payment of all excise taxes
due from sales of alcoholic beverages to a wholesaler, or beer
distributor, under the provisions of the Oklahoma Alcoholic Beverage
Control Act. Provided, the amount of the bond for every wholesaler
or beer distributor shall be not less than One Thousand Dollars
($1,000.00). Such bonds shall be payable to the State of Oklahoma
and conditioned upon compliance with the excise tax provi sions of
the Oklahoma Alcoholic Beverage Control Act and the rules of the Tax
Commission relating thereto.
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B. Every winery maintaining a winemaking self -distribution
license pursuant to Section 2 -105 of this title or a winery
maintaining a Direct Wine Shi pper's Permit pursuant to Section 3 -106
of this title shall be responsible for posting its own bond
consistent with the provisions set forth in s ubsection A of this
section.
C. In lieu of such surety bond, any such manufacturer, brewer,
wine and spirits wholesaler, or beer distributor, may deposit cash
or negotiable securities, approved by the Tax Commission, in such
amount as it may prescribe.
SECTION 5. This act shall become effective November 1, 2021.
58-1-6288 JL 12/23/20