ALCOHOLIC BEVERAGE TAXES

66.20.010(7) MILITARY SALES

Description: Sales of liquor to military installations are made at prices fixed by the Liquor Control Board and are exempt from liquor sales taxes.

Purpose: The purpose is to increase sales through the Liquor Control Board and to bring sales and distribution of such liquor under the control and regulation of the Board. The statute represents an agreement between the military and the Liquor Control Board, which allows state regulation of liquor sold on military bases. Otherwise, the military could purchase liquor outside the state and there would be no state regulation or tax.

Category/Year Enacted: Government; 1933.

Primary Beneficiaries: Military installations and the Liquor Control Board.

Conflict With Other Programs: None evident.

Tax Savings ($000): FY 2000 FY 2001 FY 2002 FY 2003
State taxes 3,550 3,550 3,550 3,550
Local taxes - - - - - - - -

If the exemption were repealed, would the estimated revenue be realized? No.

 

66.24.290(3b) MICROBREWERS - FIRST 60,000 BARRELS

Description: Brewers which are entitled to a reduced tax rate for federal tax purposes, generally referred to as microbrewers, are exempt from the additional beer excise tax levied for health care; the rate of this additional tax is $4.78. However, 1997 legislation imposed an additional tax of $1.48 on microbrewers, so the value of the exemption is equivalent to $3.30 per barrel. (Microbreweries remain subject to the basic $2.60 excise tax as well as the additional 7 percent and $2.00/barrel taxes.)

Purpose: The purpose is to exempt small breweries from a portion of the additional tax enacted in 1993.

Category/Year Enacted: Economic development; 1993.

Primary Beneficiaries: Small breweries.

Conflict With Other Programs: None evident.

Tax Savings ($000): FY 2000 FY 2001 FY 2002 FY 2003
State taxes 1,197 1,209 1,221 1,233
Local taxes - - - - - - - -

If the exemption were repealed, would the estimated revenue be realized? Yes.