H1154B1824A01819 DMS:EJH 06/16/21 #90 A01819
AMENDMENTS TO HOUSE BILL NO. 1154
Sponsor: SENATOR BROWNE
Printer's No. 1824
Amend Bill, page 2, line 26, by inserting after "SAFEKEEPING"
; adding provisions relating to fees and taxation of ready-to-
drink cocktails for off-premises consumption;
Amend Bill, page 46, by inserting between lines 28 and 29
Section 15. Article IV of the act is amended by adding a
subarticle to read:
(C.2) Fees and Taxation of Ready-to-drink Cocktails for Off-
premises Consumption .
Section 489. Fees for Licensees Importing, Distributing and
Selling Ready-to-drink Cocktails for Off-premises Consumption.--
(a) In addition to any other fee charged, an importer licensee
and importing distributor licensee shall pay an initial
application fee and an annual renewal fee to sell ready-to-drink
cocktails for off-premises consumption as follows:
(1) An initial application fee of five thousand dollars
($5,000).
(2) An annual renewal fee of three per centum (3%) of the
licensee's gross sales of ready-to-drink cocktails for off-
premises consumption.
(b) In addition to any other fee charged, a licensee with an
interior connection to a convenience store, grocery store or
department store, as those terms are defined in section 406(j)
(7), shall pay an initial application fee and an annual renewal
fee to sell ready-to-drink cocktails for off-premises
consumption as follows:
(1) An initial application fee of two thousand five hundred
dollars ($2,500).
(2) An annual renewal fee of two per centum (2%) of the
store's gross sales of ready-to-drink cocktails for off-premises
consumption.
(c) In addition to any other fee charged, a restaurant
licensee, hotel licensee and distributor licensee who is not
subject to subsection (b) shall pay an initial application fee
and an annual renewal fee to sell ready-to-drink cocktails for
off-premises consumption as follows:
(1) An initial application fee of one thousand dollars
($1,000).
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(2) An annual renewal fee of two per centum (2%) of the
licensee's gross sales of ready-to-drink cocktails for off-
premises consumption.
(d) Notwithstanding the provisions of section 802, all fees
paid to the board under this section shall be paid into the
State Stores Fund.
Section 489.1. Taxation of Ready-to-drink Cocktails for Off-
premises Consumption.-- (a) Except for sales to the board or
from the board, the following taxes shall be imposed on each
sale in this Commonwealth of ready-to-drink cocktails for off-
premises consumption:
(1) A tax in lieu of the emergency State tax imposed under
the act of June 9, 1936 (1st Sp. Sess., P.L.13, No.4), entitled
"An act i mposing an emergency State tax on liquor, as herein
defined, sold by the Pennsylvania Liquor Control Board;
providing for the collection and payment of such tax; and
imposing duties upon the Department of Revenue and the
Pennsylvania Liquor Control Board" shall be imposed and assessed
at a rate of eighteen per centum (18%) of the net price of
ready-to-drink cocktails sold for off-premises consumption and
is subject to the following:
(i) The tax imposed under this paragraph shall be collected
from the purchaser at the time of sale and shall be paid over to
the Commonwealth as provided in this subsection.
(ii) The tax imposed under this paragraph shall be included
in the purchase price of all ready-to-drink cocktails sold for
off-premises consumption and may not be separately stated from
the purchase price.
(iii) The tax imposed under this paragraph shall be paid to
and received by the Department of Revenue and, along with
interest and penalties, shall be deposited into the General
Fund.
(2) The tax under Article II of the act of March 4, 1971
(P.L.6, No.2), known as the "Tax Reform Code of 1971," which
shall be imposed on the purchase price of ready-to-drink
cocktails sold for off-premises consumption.
(b) A second or subsequent seller of ready-to-drink-
cocktails for off-premises consumption may, when filing the
seller's required returns under Article II of the "Tax Reform
Code of 1971" and this section, request a credit of taxes paid
in accordance with subsection (a) for ready-to-drink cocktails
for off-premises consumption for which taxes were remitted to
the department under subsection (a). The Department of Revenue
may promulgate rules or regulations and prescribe forms as may
be necessary to implement the provisions of this subsection.
(c) The provisions of Part VI of Article II of the "Tax
Reform Code of 1971" shall apply to the taxes imposed under
subsection (a)(1).
(d) The Department of Revenue shall share information with
the board detailing the sales and taxes paid by sellers of
ready-to-drink cocktails for off-premises consumption under this
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section.
(e) The provisions of this section shall not apply to the
sale of ready-to-drink cocktails for off-premises consumption by
a limited distillery or distillery.
(f) A licensee that sells a ready-to-drink cocktail for off-
premises consumption without collecting the tax or allows a
person to leave the premises with a ready-to-drink cocktail for
off-premises consumption that was sold or provided without the
imposition of the tax shall be subject to citation under section
471 or nonrenewal under section 470.
Amend Bill, page 46, line 29, by striking out "15" and
inserting
16
Amend Bill, page 49, line 12, by striking out "16" and
inserting
17
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