03/27/2003 01:35 PM Senate L&C

                                                                                                                                
        SB  82-ALCOHOLIC BEVERAGE TAX FOR WINE & OTHERS                                                                     
                                                                                                                              
CHAIR CON BUNDE called the Senate Labor and Commerce Standing                                                                 
Committee meeting to order at 1:35 p.m. Present were Senators                                                                   
Stevens, Davis and  Chair Bunde. He announced SB 82  to be up for                                                               
consideration.                                                                                                                  
                                                                                                                                
SENATOR STEVENS moved to adopt Amendment 1.                                                                                     
                                                                                                                                
CHAIR BUNDE objected for discussion purposes.                                                                                   
                                                                                                                                
MR. DOUG LETCH,  staff to Senator Gary Stevens,  explained he got                                                               
together  with representatives  from the  small wineries  and the                                                               
Department of  Revenue to  come up with  new language  that would                                                               
reduce the  amount of revenue  lost to the state.  That amendment                                                               
is  before members  [Amendment  1]. It  would  delete the  3,000-                                                               
gallon per  year exemption  and replace it  with 100  gallons per                                                               
month, which will insure that  the state will receive tax revenue                                                               
on  every gallon  sold over  100 gallons  each month.  The second                                                               
part  of  the  amendment  would  further  protect  the  state  by                                                               
insuring that two or more taxpayers  who have a relationship in a                                                               
business  would be  taxed  as  a single  taxpayer.  That means  a                                                               
company cannot  get an exemption  for each  one of its  brands of                                                               
wine.                                                                                                                           
                                                                                                                                
CHAIR BUNDE asked what the new fiscal note would look like.                                                                     
                                                                                                                                
MR. LETCH said  Amendment 1 needs to be adopted  by the committee                                                               
before a new  fiscal note could be prepared but  he understood it                                                               
should severely reduce the amount of lost income to the state.                                                                  
                                                                                                                                
MR.  CHUCK HARLEMERT,  Department of  Revenue, estimated  the tax                                                               
impact on an ongoing basis would  be between $18 and $20 thousand                                                               
dollars  per year.  In the  first year,  it would  be twice  that                                                               
amount, or about $37,000.                                                                                                       
                                                                                                                                
CHAIR  BUNDE  announced  there  were  no  further  questions.  He                                                               
removed his objection and Amendment 1 was adopted.                                                                              
                                                                                                                                
SENATOR  STEVENS moved  to  pass CSSB  82(L&C)  and the  attached                                                               
fiscal  note  from  committee  with  individual  recommendations.                                                               
There were no objections and it was so ordered.