CHAPTER 211

FORMERLY

HOUSE BILL NO. 132

AS AMENDED BY HOUSE AMENDMENT NO. 1

AN ACT TO AMEND TITLE 4 AND TITLE 30 OF THE DELAWARE CODE RELATING TO LICENSING, FEES AND TAXES ON THE MANUFACTURE AND SALE OF ALCOHOLIC BEVERAGES AND CIDER.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Three-fifths of all members elected to each House thereof concurring therein):

Section 1. Amend § 512C.(a), Title 4, Delaware Code, by adding to the end thereof the words "and cider".

Section 2. Amend § 512C.(b)(1), Title 4, Delaware Code, by inserting between the words "beer" and "is manufactured" the words "or cider".

Section 3. Amend § 512C.(b)(2), Title 4, Delaware Code, by striking said paragraph in its entirety.

Section 4. Amend § 554(j), Title 4, Delaware Code, by striking said subsection in its entirety and substituting in lieu thereof the following:

"(j) For a biennial license to 'manufacture' and to 'sell' beer and cider, the license fee shall be based upon annual production and shall be computed as follows: $1,000 for a brewery or microbrewery manufacturing not more than 25,000 barrels of beer and cider per year; $2,000 for a brewery manufacturing more than 25,000 but not more than 50,000 barrels of beer and cider per year; $4,000 for a brewery manufacturing more than 50,000 but not more than 100,000 barrels of beer and cider per year; and $6,000 for a brewery manufacturing more than 100,000 barrels of beer and cider per year."

Section 5. Amend § 581, Title 4, Delaware Code, by striking said section in its entirety and substituting in lieu thereof a new section to read as follows:

"§581. Rates of tax,

(a) All persons required to be licensed under the provisions of this title as an importer shall, upon the purchase or receipt of alcoholic beverages, pay a tax thereon at the rates set forth in subsection (d) hereof.

() All persons licensed under the provisions of this title to manufacture alcoholic beverages or to act as an importer pursuant to the provisions of sections 512A., 512B., or 512C. of this title shall pay a tax on all alcoholic beverages sold to customers in this State at the rates set forth in subsection (d) hereof. This subsection shall not apply to sales to customers who are (1) importers of alcoholic beverages subject to licensing under this Title, (2) distributors of alcoholic beverages licensed by a State other than Delaware where the alcoholic beverages are sold for resale in such other State, or (3) in the case of sales of beer, an instrumentality of the United States Armed Forces.

(a) Except as provided in subsections (a) or (b), any person who imports alcoholic beverages for consumption in this State shall pay to the Department of Finance the tax on such imports at the rates set forth in subsection (d).

(b) The tax payable under this section shall be as follows:

(1) For each barrel of beer, $4.85.

(2) For each gallon of cider, $.16.

(3) For each gallon of wine, $.97.

(4) For each gallon of spirits containing 25 percent or less of ethyl alcohol by volume, $2.50.

(5) For each gallon of spirits containing more than 25 percent ethyl alcohol by volume, $3.75.

(6) For each gallon of alcohol per gallon of ethyl alcohol contained, $4.85 except that the tax of $4.85 shall not apply to the purchase of alcohol by pharmacists, physicians, dentists, veterinarians, wholesale druggists, manufacturing plants where the alcohol is used in scientific work, for the manufacture of pharmaceutical products, or for use in the manufacture or compounding of preparations unfit for beverage purposes.

(e) The Commission shall make and publish such rules and regulations with respect to the collection and payment of the taxes imposed by this section as it deems proper, and all such rules and regulations that are not inconsistent with the provisions of this title shall have the force and effect of law."

Section 6. Amend § 2901(2)(b)(iii), Title 30, Delaware Code by striking the reference to "§ 581(a)" and substituting in lieu thereof a reference to "§ 581".

Section 7. Amend § 2909(c), Title 30, Delaware Code by inserting between the words "beer" and "or wine" the following: ", cider,".

Section 8. This Act shall be effective for all purchases, receipts, and manufacture of alcoholic beverages after a date 30 days after its enactment into law.

Approved July 17, 1997