HOUSE BILL 285

53rd legislature - STATE OF NEW MEXICO - second session, 2018

INTRODUCED BY

Stephanie Garcia Richard

 

 

 

 

 

AN ACT

RELATING TO TAXATION; AMENDING THE LIQUOR EXCISE TAX ACT TO PROVIDE A TAX RATE DIFFERENTIAL FOR SPIRITUOUS LIQUOR MANUFACTURED OR PRODUCED BY A CRAFT DISTILLER.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 7-17-5 NMSA 1978 (being Laws 1993, Chapter 65, Section 8, as amended by Laws 2013, Chapter 94, Section 2 and by Laws 2013, Chapter 95, Section 2) is amended to read:

     "7-17-5. IMPOSITION AND RATE OF LIQUOR EXCISE TAX.--

          A. There is imposed on a wholesaler who sells alcoholic beverages on which the tax imposed by this section has not been paid an excise tax, to be referred to as the "liquor excise tax", at the following rates on alcoholic beverages sold:

                (1) on spirituous liquors, except as provided in Paragraph (8) of this subsection, one dollar sixty cents ($1.60) per liter;

                (2) on beer, except as provided in Paragraph

(5) of this subsection, forty-one cents ($.41) per gallon;

                (3) on wine, except as provided in Paragraphs (4) and (6) of this subsection, forty-five cents ($.45) per liter;

                (4) on fortified wine, one dollar fifty cents ($1.50) per liter;

                (5) on beer manufactured or produced by a microbrewer and sold in this state, provided that proof is furnished to the department that the beer was manufactured or produced by a microbrewer, eight cents ($.08) per gallon on the first ten thousand barrels sold and twenty-eight cents ($.28) per gallon for all barrels sold over ten thousand barrels but [fewer] less than fifteen thousand barrels;

                (6) on wine manufactured or produced by a small winegrower and sold in this state, provided that proof is furnished to the department that the wine was manufactured or produced by a small winegrower:

                     (a) ten cents ($.10) per liter on the first eighty thousand liters sold;

                     (b) twenty cents ($.20) per liter on each liter sold over eighty thousand liters but not over nine hundred fifty thousand liters; and

                     (c) thirty cents ($.30) per liter on each liter sold over nine hundred fifty thousand liters but not over one million five hundred thousand liters; [and]

                (7) on cider, forty-one cents ($.41) per gallon; and

                (8) on spirituous liquor manufactured or produced by a craft distiller licensed pursuant to Section 60-6A-6.1 NMSA 1978 and sold in this state, provided that proof is provided to the department that the spirituous liquor was manufactured or produced by a craft distiller, thirty-two cents ($.32) per liter on the first three hundred seventy-five thousand liters sold.

          B. The volume of wine transferred from one winegrower to another winegrower for processing, bottling or storage and subsequent return to the transferor shall be excluded pursuant to Section 7-17-6 NMSA 1978 from the taxable volume of wine of the transferee. Wine transferred from an initial winegrower to a second winegrower remains a tax liability of the transferor, provided that if the wine is transferred to the transferee for the transferee's use or for resale, the transferee then assumes the liability for the tax due pursuant to this section.

          C. A transfer of wine from a winegrower to a wholesaler for distribution of the wine transfers the liability for payment of the liquor excise tax to the wholesaler upon the sale of the wine by the wholesaler."

     SECTION 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2018. 

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