ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session

Senate: RAGE DP 4-1-2-0 | 3rd Read 22-7-1-0

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note

SB 1125: psychologists; prescribing authority

S/E: ready-to-drink; tax rates

Sponsor: Senator Shope, LD 16

Committee on Appropriations

 

Summary of the Strike-Everything Amendment to SB 1125

Overview

Defines ready-to-drink spirits product and places a luxury tax on the product at a rate proportionate to $1.50 per gallon.

History

The Arizona Department of Revenue applies a luxury tax on liquor to the following sale, production and purchase in Arizona: 1) wholesaler of spiritous, vinous, and/or malt liquors; 2) purchaser of malt liquors for resale; 3) domestic craft distilleries; 4) domestic farm wineries; 5) domestic microbreweries; and 6) domestic cider producer and retail sales or to retail licensee.

The luxury tax rates differ for each liquor type:

1)   spirituous liquors: $3 per gallon

2)   vinous Liquor: more than 24% alcohol, $4 per gallon

3)   vinous Liquor: less than 24% alcohol, $0.84 per gallon

4)   malt Liquor (Beer): $0.16 per gallon.

Distilled spirits 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 or preparation, whether patented or otherwise, that may in sufficient quantities produce intoxication (A.R.S. § 4-101).

Provisions

1.   Defines ready-to-drink spirits product as distilled spirits that are mixed with another beverage that may contain flavoring or coloring materials and other ingredients, that do 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)

2.   Places ready-to-drink spirit products under the luxury privilege tax classification and imposes, on each sealed container of a ready-to-drink spirits product, a tax rate of $1.50 per gallon and at a proportionate rate for any lesser or greater quantity that one gallon. (Sec. 2)

3.   Applies statutory bond requirements for wholesalers of spirituous, vinous and malt liquors to wholesalers of ready-to-drink spirits products. (Sec. 3)

4.   Requires the tax on ready-to-drink spirit products to be paid on all products sold within Arizona and that the amount of the tax be added to the sales price. (Sec. 4, 5)

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8.                     SB 1125

9.   Initials PB           Page 0 Appropriations

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