Bill Text - HB1182 (2016)

Relative to fees for sales of wine by manufacturers.

---

Revision: Dec. 14, 2015, midnight

\t \t\t \t\t \t \t \t\t

HB 1182-FN - AS INTRODUCED

 

2016 SESSION

\t16-2019

\t03/05

 

HOUSE BILL\t1182-FN

 

AN ACT\trelative to fees for sales of wine by manufacturers.

 

SPONSORS:\tRep. Potucek, Rock. 6; Rep. Hannon, Straf. 25; Rep. Abramson, Rock. 20; Rep. Biggie, Hills. 23; Rep. Jones, Straf. 24; Rep. Burt, Hills. 39; Sen. Reagan, Dist 17

 

COMMITTEE:\tCommerce and Consumer Affairs

 

-----------------------------------------------------------------

 

ANALYSIS

 

\tThis bill changes the fee payable on sales by wine manufacturers from a percentage of sales to a per gallon fee.

 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

 

Explanation:\tMatter added to current law appears in bold italics.

\t\tMatter removed from current law appears [in brackets and struckthrough.]

\t\tMatter which is either (a) all new or (b) repealed and reenacted appears in regular type.

\t16-2019

\t03/05

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Sixteen

 

AN ACT\trelative to fees for sales of wine by manufacturers.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

\t1  Wine Manufacturer License; Fees  Amend RSA 178:8, IV to read as follows:

\t\tIV.  Each wine manufacturer shall maintain records and prepare reports for the commission which shall indicate the sales made under this section and shall pay to the commission [monthly] a quarterly fee equal to [5 percent of such sales]  $1 for each gallon of wine sold on or before the [tenth] fifteenth day of the [month] calendar quarter following the sale.

\t2  Effective Date.  This act shall take effect July 1, 2016.

 

\t\t\t\t\t\t\t\t\t\t\tLBAO

\t\t\t\t\t\t\t\t\t\t\t16-2019

\t\t\t\t\t\t\t\t\t\t\t10/23/15

 

1182-FN - FISCAL NOTE

 

AN ACT\trelative to fees for sales of wine by manufacturers.

 

 

FISCAL IMPACT:

The New Hampshire State Liquor Commission states this bill, as introduced, will decrease state revenue by $127,823 in FY 2017 and in each year thereafter. There will be no fiscal impact on state expenditures or on county or local revenue or expenditures.

 

METHODOLOGY:

The Liquor Commission states this bill changes the fee payable on sales by wine manufacturers from 5% of sales to $1 per gallon of wine sold and changes the reporting and payment requirements from monthly to quarterly.  The Commission assumed the following in estimating the fiscal impact of this bill:

 

\t\t\t
• Under current law, as manufacturers’ prices increase, the fee revenue also increases, under the proposed legislation any change in revenue would be due to changes in sales volume and not price.
• Changing the sales reporting and fee payment requirements from monthly to quarterly would have no significant fiscal impact.
• Sales volume of wine will remain flat through the year 2020.
• Five 750 ml bottles of wine equal one gallon and the average price per bottle of wine is $12.

\t\t

 

The Commission estimated the impact on revenue based on actual sales in calendar year 2014 as follows:

 

\t\t\t \t\t\t\t \t\t\t \t\t\t\t \t\t\t \t\t\t\t \t\t\t \t\t\t\t \t\t\t \t\t\t\t \t\t\t \t\t\t\t \t\t\t \t\t\t\t \t\t\t \t\t\t\t \t\t\t \t\t\t\t \t\t\t \t\t\t\t \t\t

Unit	Amount	Tax Revenue
Current Law:
CY 2014 wine sales in gallons	63,272
CY 2014 wine sales in bottles	319,556
Average cost per bottle	$12
Tax per bottle @5%	$0.60
Revenue under current law:		$191,734
Proposed Law:
Tax on one 750 ml bottle of wine                                                     ($1 per gallon ,  1 gallon = 5 bottles,  $1/5 = $0.20)	$0.20	$63,911
Annual Revenue Increase/ (Decrease)		($127,823)

\t\t