Substitute For
HOUSE BILL NO. 5345
A bill to amend 1998 PA 58, entitled
"Michigan liquor control code of 1998,"
by amending section 409 (MCL 436.1409), as amended by 2014 PA 48.
the people of the state of michigan enact:
Sec. 409. (1) Except as provided in this section, the
commission shall levy and collect a tax on all beer manufactured or sold in
this state at the rate of $6.30 per barrel if the beer is sold in bulk or in
different quantities. Before February 1, 2015, the tax shall must be paid by the brewer or brewpub if
manufactured in this state or by the wholesaler or the person from whom
purchased if manufactured outside this state, whichever is designated by the
commission.
(2) Beginning on and
after February 1, 2015, the tax shall under this
section must be paid by the brewer or brewpub if the beer is
manufactured in this state or if the beer is manufactured outside this state
the tax shall must be paid by the wholesaler assigned
to distribute that beer and the tax shall must be
levied and collected on the number of barrels the wholesaler actually sold to
licensed retailers in this state. A brewer may designate a wholesaler to pay
the tax on behalf of the brewer. If a brewer designates a wholesaler to pay the
tax on its behalf, the brewer shall notify the commission of the designation
and provide the commission with a copy of its brewer's report of operations
that it filed with the alcohol Alcohol and tobacco tax Tobacco Tax and trade bureau Trade Bureau of the United States department Department of treasury Treasury for each calendar year.
(3) The commission shall
establish by rule a method for the collection of the tax levied under
subsection (1) and reporting requirements for wholesalers, brewers, brewpubs,
and outstate sellers of beer to verify the remission of taxes to this state. The Except as otherwise provided in this subsection, the commission
shall not require that the tax be paid in less than monthly intervals. Beginning March 15, 2020, the commission shall not
require that the tax be paid in less than quarterly intervals. The
rules shall under this section must be promulgated
pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201
to 24.328.
(4) The tax levied in under subsection (1) shall must not be collected on beer that is
consumed on the premises of the manufacturer or is damaged in the process of
brewing, packaging, storage, and distribution and is not offered for sale,
except that beer sold by a brewpub for consumption on the premises or beer
produced and consumed on the premises of a micro brewer is subject to the tax
levied under subsection (1).
(5) The tax levied under
subsection (1) shall must be rebated to the person that paid
the tax if that the person provides satisfactory proof to
the commission that the beer was shipped outside of this state for sale and
consumption outside this state.
(6) For the purposes of
the tax levied under subsection (1), a barrel of beer contains 31 gallons.
(7) The commission may
promulgate a rule that designates the states or the laws or the rules of other
states that require a licensed wholesaler of beer to pay an additional fee for
the right to purchase, import, or sell beer manufactured in this state; that
denies the issuance of a license authorizing the importation of beer to any
wholesaler of beer in that state who applies for the license; that prohibits
wholesalers of beer in that state from possessing or selling beer purchased in
this state, unless the person from whom the beer was purchased has secured a
license and paid a fee in that state, if the seller does not transport the beer
into the state and does not sell the beer in the state; or that imposes any
higher taxes or inspection fees upon on beer
manufactured in this state when transporting the beer into or selling the beer
in that state than taxes or fees imposed upon on beer
manufactured and sold within that state. A rule promulgated under this
subsection shall must prohibit all licensees from
purchasing, receiving, possessing, or selling any beer manufactured in any
state designated in the rule. A rule promulgated under this subsection becomes
effective as provided in section 47 of the administrative procedures act of
1969, 1969 PA 306, MCL 24.247. Any licensee or person adversely affected by a
rule promulgated under this subsection is entitled to review by leave to a
court of competent jurisdiction regarding the question as to whether the
commission acted illegally or in excess of its authority in making its finding
under this subsection with respect to any state.
(8) Regardless of whether
the tax was remitted to this state by the eligible brewer or a designated
wholesaler, an eligible brewer may claim a credit or request a refund, in a
manner as determined by the commission, against the tax levied under subsection
(1) in the amount of $2.00 per barrel for the first 30,000 barrels. As used in
this subsection, "eligible brewer" means a brewer, whether or not
located in this state, or brewpub that manufactures not more than 50,000 60,000 barrels of beer during the tax year
for which the credit is claimed. In determining the number of barrels for
purposes of the credit, all brands and labels of a brewer shall must be combined and all facilities for
the production of beer that are owned or controlled by the same person shall be is treated as a single facility.
Enacting section 1. This amendatory act does not take effect unless all of the following bills of the 100th Legislature are enacted into law:
(a) House Bill No. 5341.
(b) House Bill No. 5342.
(c) House Bill No. 5343.
(d) House Bill No. 5344.
(e) House Bill No. 5346.
(f) House Bill No. 5347.
(g) House Bill No. 5348.
(h) House Bill No. 5349.
(i) House Bill No. 5350.
(j) House Bill No. 5351.
(k) House Bill No. 5352.
(l) House Bill No. 5353.
(m) House Bill No. 5354.
(n) House Bill No. 5355.
(o) House Bill No. 5400.