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128th MAINE LEGISLATURE |
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LD 794 |
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LR 1674(02) |
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An Act Regarding
the Taxation of Flavored Malt Beverages |
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Fiscal Note for
Bill as Amended by Committee Amendment " " |
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Committee: Veterans and Legal Affairs |
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Fiscal Note Required: Yes |
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| Fiscal Note |
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FY 2017-18 |
FY 2018-19 |
Projections FY 2019-20 |
Projections FY 2020-21 |
| Net Cost
(Savings) |
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General Fund |
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$0 |
$0 |
$1,686,475 |
$1,686,475 |
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| Revenue |
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General Fund |
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$0 |
$0 |
($1,686,475) |
($1,686,475) |
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| Fiscal Detail
and Notes |
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Under current
statute, manufacturers of low-alcohol spirits products are taxed at a rate of
$1.24 per gallon and in-state manufacturers of low-alcohol spirits products
are taxed an additional rate of $0.30 per gallon for a combined tax rate of
$1.54 per gallon. This bill clarifies that food flavorings or similar
products with an alcohol content that are added to malt liquor products
solely to impart flavor during the production process do not cause these
products to be classified as low-alcohol spirits products. The State has been
taxing these products at the higher combined rate of $1.54 per gallon and
will now tax them at the lower $0.35 per gallon rate applied to malt liquor
products. This will reduce General Fund revenue collected by the Bureau of Alcoholic
Beverages and Lottery Operations by an estimated $1,686,475 starting in
fiscal year 2019-20. |
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