00                            HOUSE BILL NO. 225                                                                          
01 "An Act relating to municipal taxation of alcoholic beverages and increasing the                                        
02 alcoholic beverage tax rates."                                                                                          
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 04.21.010(c) is amended to read:                                                                  
05            (c)  Taxes on alcoholic beverages levied by a municipality shall be                                      
06       collected by the state and returned in full to the levying municipality.  A                                   
07       municipality may not levy [IMPOSE] taxes on alcoholic beverages except a                                      
08                 (1)  property tax on alcoholic beverage inventories;                                                    
09                 (2)  sales tax on alcoholic beverage sales; a sales tax may be levied on                            
10       alcoholic beverages even if other sales are not taxed, or, if other sales are taxed, a                        
11       sales tax on alcoholic beverages may be equal to, higher than, or lower than a                                
12       sales tax [IF SALES TAXES ARE] imposed on other sales within the municipality,                            
13       but may not, for each type of alcoholic beverage, exceed the rate that generates                              
14       the amount of taxes on that type of alcoholic beverage imposed by the state under                             

01       AS 43.60.010; and                                                                                         
02                 (3)  [SALES TAX ON ALCOHOLIC BEVERAGE SALES THAT                                                        
03       WAS IN EFFECT BEFORE JULY 1, 1985; AND                                                                            
04                 (4)]  sales and use tax on alcoholic beverages, to the extent allowed by                            
05       (2) of this subsection, if the sale of alcoholic beverages within the municipality has                        
06       been prohibited under AS 04.11.491(a)(1), (4), or (5).                                                            
07    * Sec. 2.  AS 43.60.010(a) is amended to read:                                                                     
08            (a)  Every brewer, distiller, bottler, jobber, retailer, wholesaler, or                                      
09       manufacturer who sells alcoholic beverages in the state or who consigns shipments of                              
10       alcoholic beverages into the state, whether or not the alcoholic beverages are brewed,                            
11       distilled, bottled, or manufactured in the state, shall pay on all malt beverages                                 
12       (alcoholic content of one percent or more by volume), wines, and hard or distilled                                
13       alcoholic beverages, the following taxes:                                                                         
14                 (1)  malt beverages at the rate of $1.42 [35 CENTS] a gallon or fraction                            
15       of a gallon;                                                                                                      
16                 (2)  wine or other beverages of 21 percent alcohol by volume or less, at                                
17       the rate of  $3.41 [85 CENTS] a gallon or fraction of a gallon; and                                           
18                 (3)  other beverages having a content of more than 21 percent alcohol                                   
19       by volume at the rate of $18.40 [$5.60] a gallon.