ARIZONA HOUSE OF REPRESENTATIVES Fifty-sixth Legislature Second Regular Session

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HB 2888: ready-to-drink spirits products; tax

Sponsor: Representative Biasiucci, LD 30

Committee on Ways & Means

Overview

Defines ready-to-drink spirits products and places a luxury tax on the product at a rate proportionate to $3 per gallon for liquor in the product.

History

Distilled spirits currently includes alcohol, brandy, whiskey, rum, tequila, mescal, gin, absinthe, a compound or mixture of any of them or of any of them with any vegetable or other substance, alcohol bitters, bitters containing alcohol, fruits preserved in ardent spirits and any alcoholic mixture of preparation, whether patented or otherwise, that may in sufficient quantities produce intoxication (A.R.S. § 4-101).

Provisions

1. Defines ready-to-drink spirits products as a distilled spirit mixed with other beverages that may contain flavoring or coloring materials and other ingredients, that does not exceed 10% alcohol by volume, that are sealed in an original container of not more than 16 ounces and that are sold in the manufacturer's original packaging. (Sec. 1, 3)

2. Designates ready-to-drink spirits products sales to be purchased under the beer and wine store license. (Sec. 2)

3. Places ready-to-drink spirits products under the luxury privilege tax, and applies a luxury tax a rate proportionate to $3 per gallon for liquor in the product. (Sec. 3, 4)

4. Classifies ready-to-drink spirits products as a distilled spirit, and requires them to follow the same tax procedures as spirituous and vinous liquors. (Sec. 1, 5-7)

5. Applies to taxable periods beginning on or after the first day of the month following the general effective date. (Sec. 8)

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9.                   HB 2888

10. Initials VP/MG    Page 0 Ways & Means

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