BILL ANALYSIS H.B. 2582 By: Murphy Ways & Means Committee Report (Unamended) BACKGROUND AND PURPOSE Currently, an in-state small beer producer, also known as microbrewery, is granted a partial exemption from the state beer tax. An out-of-state beer producer is not eligible for this exemption. Recent court cases have ruled that an in-state tax exemption violates the United States Constitution by discriminating against out-of-state commerce or imposing differential treatment of in-state and out-of-state economic interests that benefits the former and burdens the latter. H.B. 2582 repeals the partial tax exemption, not to penalize Texas microbrewers, but to comply with federal rulings and potentially save the state the cost of defending a statute the economic impact of which might not even cover the cost of litigation. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS H.B. 2582 repeals Section 203.08, Alcoholic Beverage Code, the provision exempting beer produced in Texas by a manufacturer whose annual production of beer in Texas does not exceed 75,000 barrels from 25 percent of the beer tax. EFFECTIVE DATE September 1, 2011.
BILL ANALYSIS
# BILL ANALYSIS
H.B. 2582
By: Murphy
Ways & Means
Committee Report (Unamended)
H.B. 2582
By: Murphy
Ways & Means
Committee Report (Unamended)
BACKGROUND AND PURPOSE Currently, an in-state small beer producer, also known as microbrewery, is granted a partial exemption from the state beer tax. An out-of-state beer producer is not eligible for this exemption. Recent court cases have ruled that an in-state tax exemption violates the United States Constitution by discriminating against out-of-state commerce or imposing differential treatment of in-state and out-of-state economic interests that benefits the former and burdens the latter. H.B. 2582 repeals the partial tax exemption, not to penalize Texas microbrewers, but to comply with federal rulings and potentially save the state the cost of defending a statute the economic impact of which might not even cover the cost of litigation.
RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS H.B. 2582 repeals Section 203.08, Alcoholic Beverage Code, the provision exempting beer produced in Texas by a manufacturer whose annual production of beer in Texas does not exceed 75,000 barrels from 25 percent of the beer tax.
EFFECTIVE DATE September 1, 2011.
BACKGROUND AND PURPOSE
Currently, an in-state small beer producer, also known as microbrewery, is granted a partial exemption from the state beer tax. An out-of-state beer producer is not eligible for this exemption. Recent court cases have ruled that an in-state tax exemption violates the United States Constitution by discriminating against out-of-state commerce or imposing differential treatment of in-state and out-of-state economic interests that benefits the former and burdens the latter.
H.B. 2582 repeals the partial tax exemption, not to penalize Texas microbrewers, but to comply with federal rulings and potentially save the state the cost of defending a statute the economic impact of which might not even cover the cost of litigation.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
H.B. 2582 repeals Section 203.08, Alcoholic Beverage Code, the provision exempting beer produced in Texas by a manufacturer whose annual production of beer in Texas does not exceed 75,000 barrels from 25 percent of the beer tax.
EFFECTIVE DATE
September 1, 2011.