00                       CS FOR HOUSE BILL NO. 225(L&C)                                                                   
01 "An Act relating to state taxation of alcoholic beverages; and increasing the alcoholic                                 
02 beverage state tax rates."                                                                                              
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)  Except as provided in (c) of this section, every [EVERY] brewer,                                    
06       distiller, bottler, jobber, retailer, wholesaler, or manufacturer who sells alcoholic                             
07       beverages in the state or who consigns shipments of alcoholic beverages into the state,                           
08       whether or not the alcoholic beverages are brewed, distilled, bottled, or manufactured                            
09       in the state, shall pay on all malt beverages (alcoholic content of one percent or more                           
10       by volume), wines, and hard or distilled alcoholic beverages, the following taxes:                                
11                 (1)  malt beverages at the rate of $1.42 [35 CENTS] a gallon or fraction                            
12       of a gallon;                                                                                                      
13                 (2)  cider with at least 0.5 percent alcohol by volume but not more                                 
14       than 7 percent alcohol by volume, at the rate of $1.42 a gallon or fraction of a                              

01       gallon;                                                                                                       
02                 (3)  wine or other beverages, other than beverages described in (1) or                          
03       (2) of this subsection, of 21 percent alcohol by volume or less, at the rate of  $3.41                    
04       [85 CENTS] a gallon or fraction of a gallon; and                                                                  
05                 (4) [(3)]  other beverages having a content of more than 21 percent                                 
06       alcohol by volume at the rate of $18.40 [$5.60] a gallon.                                                     
07    * Sec. 2.  AS 43.60.010 is amended by adding a new subsection to read:                                             
08            (c)  A brewer shall pay a tax at the rate of 35 cents a gallon on sales of the first                         
09       60,000 barrels of beer sold in the state each fiscal year beginning July 1, 2001, for beer                        
10       produced in the United States if the producing brewery meets the qualifications of 26                             
11       U.S.C. 5051(a)(2).  To qualify for the tax rate under this subsection, the brewer must                          
12       file with the department a copy of a Bureau of Alcohol, Tobacco and Firearms                                      
13       acknowledged copy of the brewer's Notice of Brewer to Pay Reduced Rate of Tax                                     
14       required under 27 C.F.R. 25.167 for the calendar year in which the fiscal year begins                             
15       for which the partial exemption is sought.  If proof of eligibility is not received by the                        
16       department before June 1, the tax rate under this subsection does not apply until the                             
17       first day of the second month after the month the notice is received by the department.                           
18       For purposes of applying this subsection, a barrel of beer may contain no more than 31                            
19       gallons.