HB 891-FN-A – AS INTRODUCED
2007 SESSION
09/10
HOUSE BILL 891-FN-A
AN ACT establishing a beverage fee to be paid by beverage manufacturers and distributors.
SPONSORS: Rep. Mulholland, Graf 10
This bill establishes a fee to be paid to the department of revenue administration by beverage manufacturers and distributors on beverages sold for resale in this state.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
07-1005
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seven
AN ACT establishing a beverage fee to be paid by beverage manufacturers and distributors.
Be it Enacted by the Senate and House of Representatives in General Court convened:
83-G:1 Definitions. In this chapter:
I. “Beverage” means all still and carbonated drinks; fruit juices and all beverages compounded therefrom; all bottled waters, whether for medicinal or table use; and all packaged liquids intended for use in the manner of drink. Milk and unmixed products thereof, and fruit juices and waters retailed exclusively by the producer or manufacturer direct, are not included as “beverages” under this chapter. The term “beverage” as used in this chapter shall not apply to a beverage as defined in RSA 175:1, VIII.
II. “Beverage manufacturer” means an individual, partnership, limited liability company, or corporation, including any subsidiaries thereof, which sells beverages manufactured in the United States to wholesale distributors, or sells directly to consumers in this state, and who is licensed pursuant to RSA 143:10-RSA 143:12.
III. “Commissioner” means the commissioner of the department of revenue administration.
IV. “Department” means the department of revenue administration.
V. "Wholesaler'' and “wholesale distributor” means any person doing business in this state who shall purchase all of his or her beverages directly from a licensed beverage manufacturer, and who shall sell all of his or her products to licensed wholesalers, sub-jobbers, vending machine operators, and retailers.
83-G:2 Beverage Fee; Payment.
I. The following fees on each beverage sold for resale in this state by beverage manufacturers or wholesale distributors shall be required to be paid by beverage manufacturers or wholesale distributors:
(a) $.02 for a container up to and including one gallon.
(b) $.05 for a container over one gallon.
II. All fees received during the preceding calendar month shall be paid to the department on or before the tenth day of the following month. For the purpose of computing the fee payable under this section, all sales at retail by a wholesale distributor licensee shall be deemed to be sales for resale. Any wholesale distributor shall collect, from licensees to whom the wholesaler makes sales of beverages, the fees required under this section. For failure to pay any part of the fees provided for under this section when due, 10 percent of such fees shall be added and collected by the commissioner from the wholesale distributor.
83-G:3 Rulemaking. The commissioner shall adopt rules, under RSA 541-A, relative to:
I. The form and method of the payment of fees required by this chapter.
II. The administration of the beverage fee.
III. The recovery of any fee or penalties imposed pursuant to RSA 21-J.
2 New Subparagraph; License Information. Amend RSA 143:11, I by inserting after subparagraph (d) the following new subparagraph:
(e) The names and information of licensees and provisional licensees under this section shall be provided to the department of revenue administration for the purpose of the administration of the beverage fee under RSA 83-G:2.
3 Effective Date. This act shall take effect July 1, 2007.
LBAO
07-1005
Revised 02/14/07
HB 891 FISCAL NOTE
AN ACT establishing a beverage fee to be paid by beverage manufacturers and distributors.
FISCAL IMPACT:
The Department of Revenue Administration and the Department of Environmental Services indicate this bill will increase state general revenue and expenditures by an indeterminable amount in FY 2008 and each year thereafter. This bill will have no fiscal impact on county and local revenue or expenditures.
METHODOLOGY:
The Department of Revenue Administration states this bill establishes a fee to be paid by beverage manufacturers and distributors on beverages sold for resale in the state. The Department indicates that while there are information sources that estimate the dollar value of wholesale beverage sales in New Hampshire, a breakdown does not exist for sales of containers less than a gallon versus containers of a gallon or more, which is the basis for the fee calculation in this bill. The Department also could not determine for both in-state or out-of-state wholesalers, total sales to New Hampshire customers that would require a fee. Without that data, the Department did not make assumptions to estimate revenue from the beverage fee. The Department also states it would incur increased administrative expenses to create new tax forms and appropriate fee collection transmittals, perform programming changes to the computer system and for public education to implement the law. The Department is unable to estimate the costs associated with these changes and cannot determine the fiscal impact on state expenditures.
The Department of Environmental Services purchased 2002 market data on containers of soda, sparkling water, non-sparkling water, sports drinks and tea sold in the state to provide an estimate of revenue. Based on this information, there were 480 million units sold in the state and of these, the Department assumes 20% of the units were sold in containers of one gallon or greater. The 2002 figures were not adjusted for growth in consumption and do not include soy based baby formula or new products on the market since 2002. The Department also assumes the same unit would only be subject to the fee one time regardless of the number of times it is resold. The fee established by this bill is $.02 per container up to and including one gallon and $.05 per container greater than one gallon. Based on these assumptions the Department estimates revenue as follows:
480,000,000 units sold x 20% x .05 = $4,800,000
480,000,000 units sold x 80% x .02 = $7,680,000
Total $12,480,000