00                      CS FOR SENATE BILL NO. 347(FIN)                                                                   
01 "An Act relating to alcoholic beverages."                                                                               
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1.  AS 04.21.010(c) is amended to read:                                                                  
04            (c)  A municipality may not impose taxes on alcoholic beverages except a                                     
05                 (1)  property tax on alcoholic beverage inventories;                                                    
06                 (2)  sales tax on alcoholic beverage sales; a sales tax may be imposed                              
07       on alcoholic beverages even if other sales are not taxed, or, if other sales are                              
08       taxed, a sales tax on alcoholic beverages may be equal to, higher than, or lower                              
09       than a sales tax [IF SALES TAXES ARE] imposed on other sales within the                                       
10       municipality; and                                                                                             
11                 (3)  [SALES TAX ON ALCOHOLIC BEVERAGE SALES THAT                                                        
12       WAS IN EFFECT BEFORE JULY 1, 1985; AND                                                                            
13                 (4)]  sales and use tax on alcoholic beverages if the sale of alcoholic                                 
14       beverages within the municipality has been prohibited under AS 04.11.491(a)(1), (4),                              
15       or (5).                                                                                                           

01    * Sec. 2.  AS 29.45.650(a) is amended to read:                                                                     
02            (a)  Except as provided in [AS 04.21.010(c) AND IN] (f) and (h) of this                                      
03       section, a borough may levy and collect a sales tax on sales, rents, and on services                              
04       provided in the borough.  The sales tax may apply to any or all of these sources.                                 
05       Exemptions may be granted by ordinance.                                                                           
06    * Sec. 3.  AS 43.60.010(a) is amended to read:                                                                     
07            (a)  Except as provided in (c) of this section, every [EVERY] brewer,                                    
08       distiller, bottler, jobber, retailer, wholesaler, or manufacturer who sells alcoholic                             
09       beverages in the state or who consigns shipments of alcoholic beverages into the state,                           
10       whether or not the alcoholic beverages are brewed, distilled, bottled, or manufactured                            
11       in the state, shall pay on all malt beverages (alcoholic content of one percent or more                           
12       by volume), wines, and hard or distilled alcoholic beverages, the following taxes:                                
13                 (1)  malt beverages at the rate of $1.42 [35 CENTS] a gallon or fraction                            
14       of a gallon;                                                                                                      
15                 (2)  cider with at least 0.5 percent alcohol by volume but not more                                 
16       than 7 percent alcohol by volume, at the rate of $1.42 a gallon or fraction of a                              
17       gallon;                                                                                                       
18                 (3)  wine or other beverages, other than beverages described in (1) or                          
19       (2) of this subsection, of 21 percent alcohol by volume or less, at the rate of  $3.41                    
20       [85 CENTS] a gallon or fraction of a gallon; and                                                                  
21                 (4) [(3)]  other beverages having a content of more than 21 percent                                 
22       alcohol by volume at the rate of $18.40 [$5.60] a gallon.                                                     
23    * Sec. 4.  AS 43.60.010 is amended by adding a new subsection to read:                                             
24            (c)  A brewer shall pay a tax at the rate of 35 cents a gallon on sales of the first                         
25       60,000 barrels of beer sold in the state each fiscal year beginning July 1, 2002, for beer                        
26       produced in the United States if the producing brewery meets the qualifications of 26                             
27       U.S.C. 5051(a)(2).  To qualify for the tax rate under this subsection, the brewer must                          
28       file with the department a copy of a Bureau of Alcohol, Tobacco and Firearms                                      
29       acknowledged copy of the brewer's Notice of Brewer to Pay Reduced Rate of Tax                                     
30       required under 27 C.F.R. 25.167 for the calendar year in which the fiscal year begins                             
31       for which the partial exemption is sought.  If proof of eligibility is not received by the                        

01       department before June 1, the tax rate under this subsection does not apply until the                             
02       first day of the second month after the month the notice is received by the department.                           
03       For purposes of applying this subsection, a barrel of beer may contain no more than 31                            
04       gallons.