The bill amends K.S.A. 2025 Supp. 41-501 to introduce a decreased gallonage tax on beer and cereal malt beverages that are manufactured and packaged in the United States. Specifically, the tax rate for these products is reduced from $0.18 to $0.06 per gallon. The bill also clarifies definitions related to the gallonage tax, including changes to the terminology regarding federal areas and malt products. Additionally, it repeals the existing section of K.S.A. 2025 Supp. 41-501, effectively replacing it with the new provisions outlined in the bill.

Furthermore, the bill maintains various exemptions and stipulations regarding the payment of the gallonage tax, including exemptions for manufacturers and distributors under certain conditions, as well as specific uses of alcohol and wine by educational and medical institutions. The tax is to be collected by the director and remitted to the state treasury, with a portion allocated to community alcoholism and intoxication programs. The act will take effect upon its publication in the statute book.

Statutes affected:
As introduced: 41-501