H. B. 2451
(By Mr. Speaker, Mr. Chambers and Delegates
Gallagher, Brown and Houvouras)
[Introduced March 3, 1993; referred to the
Committee on the Judiciary.]
A BILL to repeal section seventeen, article sixteen, chapter
eleven of the code of West Virginia, one thousand nine
hundred thirty-one, as amended; to amend and reenact
sections six and thirteen, article sixteen of said chapter,
relating to West Virginia brewers and units of sale, barrel
tax and labeling.
Be it enacted by the Legislature of West Virginia:
That section seventeen, article sixteen, chapter eleven of
the code of West Virginia, one thousand nine hundred thirty-one,
as amended, be repealed; that sections six and thirteen, article
sixteen of said chapter be amended and reenacted to read as
follows:
ARTICLE 16. NONINTOXICATING BEER.
§11-16-6. License in one capacity only; no connection between
different licensees; when brewer may act as
distributor; credit and rebates proscribed;
brewpub.
(a) No person shall be licensed in more than one capacity
under the terms of this article, and there shall be no connection
whatsoever between any retailer or distributor or brewer, and no
person shall be interested directly or indirectly through the
ownership of corporate stock, membership in a partnership, or in
any other way in the business of a retailer, if such person is
at the same time interested in the business of a brewer or
distributor. A brewer whose place of brewing or manufacture is
located within the state of West Virginia may act as distributor
of his own product from such brewery, place of manufacture or
bottling, but must have a distributor's license for distribution
from a place other than the place of brewing or manufacture. A
resident brewer or distributor may sell to a consumer for
personal use and not for resale, draught beer in quantities of
one-eighth one gallon, one-fourth and one-half barrels in the
original containers. Additionally, a resident brewer may enter
into a contract arrangement for private labeling with retailers
for quantities no less than ten barrels.
(b) It shall be unlawful for any brewer, manufacturer or
distributor to assist any retailer or for any retailer to accept
assistance from any brewer, manufacturer or distributor any gifts
or loans or forebearance of money or property of any kind, nature
or description, or other thing of value or by the giving of any
rebates or discounts of any kind whatsoever except as may be
permitted by rule, regulation, or order promulgated by the
commissioner in accordance with this article.
Notwithstanding paragraphs (a) and (b) above, a brewpub may
manufacture and offer for retail sale nonintoxicating beer so
long as the sale of the nonintoxicating beer is limited to the
brewpub premises.
§11-16-13. Barrel tax on nonintoxicating beer.
(a) There is hereby levied and imposed, in addition to the
license taxes provided for in this article, a tax of five dollars
and fifty cents on each barrel of thirty-one gallons and in like
ratio on each part barrel of nonintoxicating beer manufactured in
this state for sale within this state, whether contained or sold
in barrels, bottles or other containers, and a like tax is hereby
levied and imposed upon all nonintoxicating beer manufactured
outside of this state and brought into this state for sale within
this state; but no nonintoxicating beer manufactured, sold or
distributed in this state is subject to more than one barrel tax.
The brewer manufacturing or producing nonintoxicating beer within
this state for sale within this state shall pay the barrel tax on
such nonintoxicating beer, and, except as provided otherwise, the
distributor who is the original consignee of nonintoxicating beer
manufactured or produced outside of this state, or who brings
such nonintoxicating beer into this state, shall pay the barrel
tax on such nonintoxicating beer manufactured or produced outside
of this state.
(b) On or before the tenth day of each month during the
license period, every brewer or operator of a brewpub who
manufactures or produces nonintoxicating beer within this stateshall file a report in writing, under oath, to the tax
commissioner, in the form prescribed by the tax commissioner,
stating its total estimated sales, or in the case of a brewpub,
its total estimated production of nonintoxicating beer within
this state during that month, and at the same time shall pay the
tax levied by this article on such estimated monthly sales or
production. On or before the tenth day of each month during the
license period, every distributor who is the original consignee
of nonintoxicating beer manufactured or produced outside this
state or who brings such beer into this state for sale shall file
a report in writing, under oath, to the tax commissioner, in the
form prescribed by the tax commissioner, stating its total
estimated purchases of such nonintoxicating beer during that
month, and at the same time shall pay the tax thereon levied by
this article for such estimated monthly purchase: Provided, That
the tax commissioner may allow, or require, a brewer who
manufactures or produces nonintoxicating beer outside this state
to file the required report and pay the required tax on behalf of
its distributor or distributors. Any brewer or distributor or
operator of a brewpub who files a report under this subsection
may adjust its monthly estimated sales or purchases or production
report or reports by filing amended reports by the twenty-fifth
day of the reporting month.
(c) Every brewer or distributor or operator of a brewpub who
files a report under subsection (b) of this section shall file a
final monthly report of said sales or purchases or production, ina form and at a time prescribed by the tax commissioner, stating
actual nonintoxicating beer sales, purchases, or production and
other information which the tax commissioner may require, and
shall include a remittance for any barrel tax owed for actual
sales or purchases or production made in excess of the amount
estimated for that month.
(d) Any brewer or distributor or operator of a brewpub who
files a report pursuant to subsection (b) of this section
reflecting an underestimation of twenty-five percent or more of
actual sales or purchases or production of nonintoxicating beer
as shown by the report filed pursuant to subsection (c) of this
section shall be assessed a penalty of one percent of the total
taxes due in such prior month.
(e) Brewers and distributors and operators of brewpubs shall
keep all records which relate to the sale or purchase in this
state of nonintoxicating beer for a period of three years unless
written approval for earlier disposal is granted by the tax
commissioner.
NOTE: The purpose of this bill is to create a one gallon
container size for sale, collecting total tax on transferred
barrels and repealing the prohibition on labeling.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.