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Senate Engrossed |
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State of Arizona Senate Fifty-first Legislature Second Regular Session 2014
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SENATE BILL 1180 |
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AN ACT
amending sections 42‑3001, 42-3353 and 42-3354, Arizona Revised Statutes; relating to luxury tax.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. 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" includes include imprinting tax meter stamps on packages and individual containers as authorized by the department.
2. "Cider" means vinous liquor that is made from the normal alcoholic fermentation of the juice of sound, ripe apples or pears, including flavored, sparkling and carbonated cider and cider made from condensed apple or pear must, and that contains more than one-half of one per cent of alcohol by volume but not more than seven per cent of alcohol by volume.
3. "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 4, subdivision (b) of this section.
4. "Cigarette" means either of the following:
(a) Any roll of tobacco or any substitute for 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.
5. "Cigarette distributor" means a distributor of cigarettes without stamps affixed as required by this article who is required to be licensed under section 42-3201. Cigarette distributor does not include a retailer or any person who holds a permit as a cigarette manufacturer, export warehouse proprietor or importer under 26 United States Code section 5712 if the person sells or distributes cigarettes in this state only to licensed cigarette distributors or to another person who holds a permit under 26 United States Code section 5712 as an export warehouse proprietor or manufacturer.
6. "Cigarette importer" means a distributor who directly or indirectly imports into the United States a finished cigarette for sale or distribution and who is required to be licensed under section 42-3201.
7. "Cigarette manufacturer" means a distributor who manufactures, fabricates, assembles, processes or labels a finished cigarette and who is required to be licensed under section 42-3201.
8. "Consumer" means a person in this state who comes into possession of any luxury subject to the tax imposed by this chapter and who, on coming into possession of the luxury, is not a distributor intending to sell or distribute the luxury, retailer or wholesaler.
9. "Distributor" means any person who 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 stamps affixed as required by this article.
(b) Other tobacco products upon on which the taxes have not been paid as required by this chapter.
10. "Domestic farm winery" has the same meaning prescribed in section 4-101.
11. "Domestic microbrewery" has the same meaning prescribed in section 4-101.
12. "First sale" means the initial sale or distribution in intrastate commerce or the initial use or consumption of cigarettes or other tobacco products.
13. "Luxury" means any article, object or device upon on which a tax is imposed under this chapter.
14. "Malt liquor" means any liquid that contains more than one‑half of one per cent 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.
15. "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.
16. "Retailer" means any person who 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.
17. "Spirituous liquor" means any liquid that contains more than one‑half of one per cent 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.
18. "Tobacco products" means all luxuries included in section 42-3052, paragraphs 5 through 9, except that for the purposes of article 5.1 of this chapter tobacco products has the same meaning prescribed in section 42-3221.
19. "Vinous liquor" means any liquid that contains more than one‑half of one per cent 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.
(d) liquids that otherwise constitute ciders, as defined in this section.
20. "Wholesaler" means a person who sells any spirituous, vinous or malt liquor taxed under this chapter to retail dealers or for the purposes of resale only.
Sec. 2. Section 42-3353, Arizona Revised Statutes, is amended to read:
42-3353. Return and payment by cider or malt liquor wholesalers
A. Every wholesaler of cider or malt liquors purchasing cider or malt liquors for resale within the state shall pay the tax under this chapter on all such liquors so purchased and add the amount of the tax to the sales price.
B. Before January 1, 2007, every wholesaler of vinous liquors purchasing vinous liquors for resale within this state shall pay the tax under this chapter on all such liquors so purchased and add the amount of tax to the sales price.
C. b. The wholesaler shall pay the tax to the department monthly on or before the twentieth day of the month next succeeding the month in which the tax accrues.
D. c. On or before the date prescribed by subsection C b. of this section the wholesaler shall prepare a sworn return for the month in which the tax accrues in the form prescribed by the department, showing:
1. The amount of cider or malt liquors purchased during the month in which the tax accrues.
2. Before January 1, 2007, the amount of vinous liquors purchased during the month in which the tax accrues.
3. 2. The amount of tax for the period covered by the return.
4. 3. Any other information that the department deems necessary for the proper administration of this chapter.
E. d. The taxpayer shall deliver the return, together with a remittance of the amount of the tax due, to the department.
F. e. Any taxpayer who fails to pay the tax within ten days from the date upon which the payment becomes due shall be subject to and shall pay a penalty determined under section 42‑1125, plus interest at the rate determined pursuant to section 42‑1123 from the time the tax was due and payable until paid.
Sec. 3. Section 42-3354, Arizona Revised Statutes, is amended to read:
42-3354. Return and payment by spirituous or vinous liquor wholesalers
A. Every wholesaler of spirituous liquors selling spirituous liquors within the state shall pay the tax under this chapter on all such liquor sold within the state and add the amount of the tax to the sales price.
B. Beginning January 1, 2007, Every wholesaler of vinous liquors selling vinous liquors within this state shall pay the tax under this chapter on all such liquors sold within this state and add the amount of tax to the sales price.
C. The wholesaler shall pay the tax to the department monthly on or before the twentieth day of the month next succeeding the month in which the tax accrues.
D. On or before the date prescribed by subsection C of this section the wholesaler shall prepare a sworn return for the month in which the tax accrues in the form prescribed by the department, showing:
1. The amount of spirituous liquors sold in this state during the month in which the tax accrues.
2. Beginning January 1, 2007, The amount of spirituous vinous liquors sold in the state during the month in which the tax accrues.
3. The amount of tax for the period covered by the return.
4. Any other information that the department deems necessary for the proper administration of this chapter.
E. The wholesaler shall deliver the return, together with a remittance of the amount of the tax due, to the department.
F. Any taxpayer who fails to pay the tax within ten days from the date upon which the payment becomes due shall be subject to and shall pay a penalty determined under section 42‑1125, plus interest at the rate determined pursuant to section 42‑1123 from the time the tax was due and payable until paid.
Sec. 4. Exemption from rulemaking
For the purposes of implementing this bill, as amended by this act, the department of revenue is exempt from the rulemaking requirements of title 41, chapter 6, Arizona Revised Statutes, for one year after the effective date of this act.