HB 612-FN - AS INTRODUCED
2023 SESSION
23-0331
08/04
HOUSE BILL 612-FN
AN ACT relative to the fees for New Hampshire wine manufacturers.
SPONSORS: Rep. Potucek, Rock. 13; Rep. J. Nelson, Rock. 13; Sen. Birdsell, Dist 19
COMMITTEE: Commerce and Consumer Affairs
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ANALYSIS
This bill:
I. Allows wine manufacturers to give a bottle as a sample under certain conditions.
II. Changes the fee and tax structure on wine sold in state.
III. Exempts a certain volume of wine from taxes for home use.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
23-0331
08/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Three
AN ACT relative to the fees for New Hampshire wine manufacturers.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Wine Manufacturer License. Amend RSA 178:8, III-IV to read as follows:
III. Each wine manufacturer shall have the right to sell at retail or wholesale at its winery, and at retail at one wine manufacturer retail outlet, for off-premises consumption any of its wines. The wine manufacturer shall pay an annual fee of $216 to the commission for the wine manufacturer retail outlet. The wine manufacturer may transport wines it manufactures to its wine manufacturer retail outlet for sample or sale. Visitors of legal drinking age at the manufacturing location or wine manufacturer retail outlet may be provided with samples of wine manufactured by the licensee in this state for tasting. A wine manufacturer may either provide samples for free or for a fee which shall be limited to one 2-ounce sample per label or one [5] 6-ounce glass per person. At such times as food is available, a wine manufacturer may serve no more than 2 [5] 6-ounce glasses per person and full, opened bottles of wine to groups of 2 or more persons of legal drinking age in any areas approved by the commission. Notwithstanding any other provision of law, opened and unfinished bottles of wine provided as samples by the wine manufacturer may be packaged for transport from the premises, provided that the person is not in a state of intoxication as defined in RSA 507-F:1, IV and the bottle is removed and transported by being securely sealed and bagged by the manufacturer, either to be in conformance with any applicable local open container law for those patrons on foot, or transported as required by RSA 265-A:44, in the trunk of a motor vehicle. If the vehicle is not equipped with a trunk, the securely sealed opened table wine bottles may be stored and transported in that compartment or area of the vehicle which is the least accessible to the driver. For the purpose of this section, food and non-alcoholic beverages may be provided by a properly-licensed third party food vendor, prepared on or off the premises. Pursuant to rules adopted by the commission, a wine manufacturer may transport its products to a farmers' market or a wine festival licensed under RSA 178:31, and may sell such products at retail in the original container.
IV. Each wine manufacturer shall maintain records and prepare reports for the commission which shall indicate the [sales made under this section] number of gallons of wine sold within the state and shall pay to the commission monthly [a fee] a tax equal to [5 percent of such sales] $0.50 per gallon on or before the tenth day of the month following the sale. Wine sales consumed on premises under paragraph III shall be exempt from such tax and shall be subject to the tax on meals and rooms under RSA 78-A.
2 New Paragraph; Wine Manufacturer License. Amend RSA 178:8 by inserting after paragraph VIII the following new paragraph:
IX. Wine manufactures may exempt up to 100 gallons per year for a household with one person and up to 200 gallons of wine per year for a household with 2 or more people from the tax in paragraph IV.
3 Effective Date. This act shall take effect July 1, 2023.
23-0331
Revised 1/23/23
HB 612-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to the fees for New Hampshire wine manufacturers.
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
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| Estimated Increase / (Decrease) | |||
STATE: | FY 2023 | FY 2024 | FY 2025 | FY 2026 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | $0 | Indeterminable Decrease | Indeterminable Decrease | Indeterminable Decrease |
Expenditures | $0 | $0 | $0 | $0 |
Funding Source: | [ X ] General [ ] Education [ ] Highway [ X ] Other - Liquor Fund | |||
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METHODOLOGY:
This bill allows wine manufacturers to give a bottle as a sample under certain conditions, changes the fee and tax structure on wine sold in the State, and exempts a certain volume of wine from taxes for home use.
The Liquor Commission indicates this bill would change RSA 178:8, IV from a fee of 5% of wine sold to a tax of $.50 cents per gallon of wine sold within the State. In 2021 the Liquor Commission collected $367,096 from wine manufacturers based on the 5% of their sales. The Commission estimates in 2021, a tax rate of $.50 per gallon of wine sold would have generated revenue of $47,790, a decrease of $319,306 or 87%. The bill also would exempt wine sales made on a manufacturer's premises which would instead be subject to the meals and room tax. The Commission estimates this change would decrease Liquor revenue by another 1% with an offsetting increase to the meals and rooms tax revenue. In addition, the bill would add a new paragraph which provides that wine manufactures may exempt up to 100 gallons per year for a household with one person and up to 200 gallons of wine per year for a household with 2 or more people from the proposed tax. The Commission assumes this would reduce annual revenue to the Liquor Fund by an additional $450.
AGENCIES CONTACTED:
Liquor Commission