Bill Text: AZ HB2745 | 2021 | Fifty-fifth Legislature 1st Regular | Introduced
Bill Title: Luxury tax; packaged cocktails; records
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-02-03 - House read second time [HB2745 Detail]
Download: Arizona-2021-HB2745-Introduced.html
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REFERENCE TITLE: luxury tax; packaged cocktails; records |
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State of Arizona House of Representatives Fifty-fifth Legislature First Regular Session 2021
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HB 2745 |
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Introduced by Representative Hernandez D
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AN ACT
Amending sections 4-119, 42-3001 and 42-3052, Arizona Revised Statutes; amending title 42, chapter 3, article 8, Arizona Revised Statutes, by adding section 42-3357; relating to alcoholic beverages.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 4-119, Arizona Revised Statutes, is amended to read:
4-119. Records; proprietary information
A. A licensee shall keep records of licensed business activity in a manner and location and for such a duration as prescribed by the director. The rules of the director shall require that each on-sale retailer maintain at the licensed premises a copy of all required records, including a current log of all persons employed at the licensed premises including that includes each employee's full legal name, date of birth, address and responsibilities. A licensee shall retain records for two years.
B. Proprietary information that contains confidential formulas, production processes and business information that may damage the licensee and that is filed with the United States alcohol and tobacco tax and trade bureau is not subject to inspection.
Sec. 2. Section 42-3001, Arizona Revised Statutes, is amended to read:
42-3001. Definitions
In this chapter, unless the context otherwise requires:
1. "Affix" and "affixed" include imprinting tax meter stamps on packages and individual containers as authorized by the department.
2. "Brand family" has the same meaning prescribed in section 44-7111.
3. "Cavendish" means a tobacco product that is smoked from a pipe and that meets one of the following criteria:
(a) Is described as cavendish, as containing cavendish or as a cavendish blend on its packaging, labeling or promotional materials.
(b) Appears to have been processed or manufactured with an amount of flavorings and humectants that exceeds twenty percent of the weight of the tobacco contained in the product.
(c) Appears to be blended with or contain a tobacco product described in subdivision (b) of this paragraph.
4. "Cider" means vinous liquor that is made from the normal alcoholic fermentation of the juice of sound, ripe apples, pears or other pome fruit, including flavored, sparkling and carbonated cider and cider made from condensed apple, pear or other pome fruit must, and that contains more than one-half of one percent of alcohol by volume but not more than seven percent of alcohol by volume.
5. "Cigar" means any roll of tobacco wrapped in leaf tobacco or in any substance containing tobacco other than any roll of tobacco that is a cigarette, as defined in paragraph 6, subdivision (b) of this section.
6. "Cigarette" means either of the following:
(a) Any roll of tobacco wrapped in paper or any substance not containing tobacco.
(b) Any roll of tobacco wrapped in any substance containing tobacco that, because of its appearance, the type of tobacco used in the filler or its packaging and labeling, is likely to be offered to or purchased by a consumer as a cigarette described in subdivision (a) of this paragraph. This subdivision shall be interpreted consistently with the classification guidelines established by the federal alcohol and tobacco tax and trade bureau.
7. "Consumer" means a person in this state that comes into possession of any luxury subject to the tax imposed by this chapter and that, on coming into possession of the luxury, is not a distributor intending to sell or distribute the luxury, retailer or wholesaler.
8. "Craft distiller" means a distiller in the United States or in a territory or possession of the United States that holds a license pursuant to section 4-205.10.
9. "Distributor" means any person that manufactures, produces, ships, transports or imports into this state or in any manner acquires or possesses for the purpose of making the first sale of the following:
(a) Cigarettes without Arizona tax stamps affixed as required by this article.
(b) Roll-your-own tobacco or other tobacco products on which the taxes have not been paid as required by this chapter.
10. "Farm winery" has the same meaning prescribed in section 4-101.
11. "First sale" means the initial sale or distribution in intrastate commerce or the initial use or consumption of cigarettes, roll-your-own tobacco or other tobacco products.
12. "Luxury" means any article, object or device on which a tax is imposed under this chapter.
13. "Malt liquor" means any liquid that contains more than one-half of one percent alcohol by volume and that is made by the process of fermentation and not distillation of hops or grains, but not including:
(a) Liquids made by the process of distillation of such substances.
(b) Medicines that are unsuitable for beverage purposes.
14. "Master settlement agreement" has the same meaning prescribed in section 44-7101.
15. "Microbrewery" has the same meaning prescribed in section 4-101.
16. "Nonparticipating manufacturer" has the same meaning prescribed in section 44-7111.
17. "Other tobacco products" means tobacco products other than cigarettes and roll-your-own tobacco.
18. "Participating manufacturer" has the same meaning prescribed in section 44-7111.
19. "Person" means any individual, firm, partnership, joint venture, association, corporation, municipal corporation, estate, trust, club, society or other group or combination acting as a unit, and the plural as well as the singular number.
20. "Place of business" means a building, facility site or location where an order is received or where tobacco products are sold, distributed or transferred. Place of business does not include a vehicle.
21. "Ready-to-drink packaged cocktails" means a packaged beverage in a prepared form that contains spirituous liquor as defined in section 4-101.
21. 22. "Retailer" means any person that comes into possession of any luxury subject to the taxes imposed by this chapter for the purpose of selling it for consumption and not for resale.
22. 23. "Roll-your-own tobacco" means any tobacco that, because of its appearance, type, packaging or labeling, is suitable for use and likely to be offered to or purchased by consumers as tobacco for making cigarettes. This paragraph shall be interpreted consistently with the term as used in section 44-7101. This paragraph shall be interpreted consistently with the classification guidelines established by the federal alcohol and tobacco tax and trade bureau.
23. 24. "Smoking tobacco" means any tobacco that, because of its appearance, type, packaging, labeling or promotion, is suitable for use and likely to be offered to or purchased by consumers as tobacco for making cigarettes or otherwise consumed by burning. Smoking tobacco includes pipe tobacco and roll-your-own tobacco.
24. 25. "Spirituous liquor" means any liquid that contains more than one-half of one percent alcohol by volume, that is produced by distillation of any fermented substance and that is used or prepared for use as a beverage. Spirituous liquor does not include medicines that are unsuitable for beverage purposes.
25. 26. "Tobacco product manufacturer" has the same meaning prescribed in section 44-7101.
26. 27. "Tobacco products" means all luxuries included in section 42-3052, paragraphs 5 through 9.
27. 28. "Vehicle" means a device in, on or by which a person or property is or may be transported or drawn on the roads of this state regardless of the means by which it is propelled or whether it runs on a track.
28. 29. "Vinous liquor" means any liquid that contains more than one-half of one percent alcohol by volume and that is made by the process of fermentation of grapes, berries, fruits, vegetables or other substances but does not include:
(a) Liquids in which hops or grains are used in the process of fermentation.
(b) Liquids made by the process of distillation of hops or grains.
(c) Medicines that are unsuitable for beverage purposes.
29. 30. "Wholesaler" means a person that sells any spirituous, vinous or malt liquor taxed under this chapter to retail dealers or for the purposes of resale only.
Sec. 3. Section 42-3052, Arizona Revised Statutes, is amended to read:
42-3052. Classifications of luxuries; rates of tax
The taxes under this chapter are imposed at the following rates:
1. On each sealed container of spirituous liquor, at the rate of three dollars $3 per gallon and at a proportionate rate for any lesser or greater quantity than one gallon.
2. On each container of vinous liquor, except cider, of which the alcoholic content is not greater than twenty-four per cent percent by volume, at the rate of eighty-four cents $.84 per gallon and at a proportionate rate for any lesser or greater quantity than one gallon.
3. On each container of vinous liquor of which the alcoholic content is greater than twenty-four per cent percent by volume, containing eight ounces or less, twenty-five cents $.25, and for each eight ounces for containers containing more than eight ounces, twenty-five cents $.25.
4. On each gallon of malt liquor, or cider or ready-to-drink packaged cocktails, sixteen cents $.16, and at a proportionate rate for any lesser or greater quantity than one gallon.
5. On each cigarette, nine-tenths cent $.009.
6. On smoking tobacco, snuff, fine cut chewing tobacco, cut and granulated tobacco, shorts and refuse of fine cut chewing tobacco, and refuse, scraps, clippings, cuttings and sweepings of tobacco, excluding tobacco powder or tobacco products used exclusively for agricultural or horticultural purposes and unfit for human consumption, two cents $.02 per ounce or major fraction of an ounce.
7. On all cavendish, plug or twist tobacco, one-half cent $.005 per ounce or fractional part of an ounce.
8. On each twenty small cigars or fractional part weighing not more than three pounds per thousand, four cents $.04.
9. On cigars of all descriptions except those included in paragraph 8 of this section, made of tobacco or any tobacco substitute:
(a) If manufactured to retail at not more than five cents $.05 each, two cents $.02 on each three cigars.
(b) If manufactured to retail at more than five cents $.05 each, two cents $.02 on each cigar.
Sec. 4. Title 42, chapter 3, article 8, Arizona Revised Statutes, is amended by adding section 42-3357, to read:
42-3357. Credit for craft distillers
A. A credit is allowed against the taxes imposed by this chapter as follows:
1. For a taxpayer that holds a license pursuant to title 4, chapter 2, article 1 and that paid the tax imposed pursuant to section 42-3052, paragraph 1, an amount of $2 per gallon or a proportionate rate for any lesser or greater quantity than one gallon for the first twenty thousand gallons produced.
2. For a taxpayer that holds a license pursuant to title 4, chapter 2, article 1 and that paid the tax imposed pursuant to section 42-3052, paragraph 2, an amount of $.50 per gallon or a proportionate rate for any lesser or greater quantity than one gallon for the first twenty thousand gallons produced.
3. For a taxpayer that holds a license pursuant to title 4, chapter 2, article 1 and that paid the tax imposed pursuant to section 42-3052, paragraph 4, an amount of $.10 per gallon or a proportionate rate for any lesser or greater quantity than one gallon for the first five hundred thousand gallons produced.
B. A taxpayer shall claim the credit for each tax period on forms prescribed and furnished by the department, which may be incorporated in the return form prescribed pursuant to this chapter. A claim for credit is not allowed if the taxpayer fails to pay the tax due, plus any estimated tax liability, before the payment becomes delinquent. The department shall recapture any credit amounts claimed by the taxpayer but disallowed.
C. The credits under this section may not be removed from the allocation prescribed by section 42-3106.
Sec. 5. Applicability
This act applies to taxable periods beginning on or after the first day of the month following the general effective date.
