00HOUSE BILL NO. 96                                                                                                       
01 "An Act increasing and requiring annual adjustment of the tax on alcoholic                                              
02 beverages; and providing for an effective date."                                                                        
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 43.60.010(a) is amended to read:                                                                    
05  (a)  Every brewer, distiller, bottler, jobber, retailer, wholesaler, or manufacturer                                  
06 who sells alcoholic beverages in the state or who consigns shipments of alcoholic                                       
07 beverages into the state, whether or not the alcoholic beverages are brewed, distilled,                                 
08 bottled, or manufactured in the state, shall pay on all malt beverages (alcoholic content                               
09 of one percent or more by volume), wines, and hard or distilled alcoholic beverages,                                    
10 the following taxes:                                                                                                    
11   (1)  malt beverages at the rate of $1.05 [35 CENTS] a gallon or fraction                                           
12 of a gallon;                                                                                                            
13   (2)  wine or other beverages of 21 percent alcohol by volume or less,                                                
14 at the rate of $2.15 [85 CENTS] a gallon or fraction of a gallon; and                                                 

01   (3)  other beverages having a content of more than 21 percent alcohol                                                
02 by volume at the rate of $12.75 [$5.60] a gallon.                                                                     
03    * Sec. 2.  AS 43.60.010 is amended by adding a new subsection to read:                                               
04     (c)  The department shall on July 1 of each year adjust the taxes imposed under                                    
05 (a) of this section to reflect increases in the Consumer Price Index for all urban                                      
06 consumers for all items for the Anchorage metropolitan area compiled by the Bureau                                      
07 of Labor Statistics, United States Department of Labor, for the second half of the                                      
08 preceding calendar year.  The semiannual index for the second half of 1994 is the                                       
09 reference base index.  The department shall round the amount adjusted under this                                        
10 subsection to the nearest dollar.  The revised tax rates shall be provided to the                                       
11 legislature and each brewer, distiller, bottler, jobber, retailer, wholesale, or                                        
12 manufacturer who sells alcoholic beverages in the state, and made available to the                                      
13 public.                                                                                                                 
14    * Sec. 3.  Notwithstanding sec. 4 of this Act and AS 43.60.010(c), enacted in sec. 2 of this                         
15 Act, the Department of Revenue shall, by June 1, 1996, determine the increase in tax rates                              
16 resulting from implementation of AS 46.60.010(c), enacted in sec. 2 of this Act, and impose                             
17 the new tax rates beginning July 1, 1996.                                                                               
18    * Sec. 4.  This Act takes effect July 1, 1995.