The bill amends the Michigan Liquor Control Code of 1998, specifically section 301, to update the tax rates on wine and mixed spirit drinks sold in the state. It establishes a tax of 13.5 cents per liter for wine containing 16% or less alcohol by volume, and 20 cents per liter for wine with more than 16% alcohol, both applicable to bulk sales and proportionally for smaller quantities. Additionally, a tax of 30 cents per liter is imposed on mixed spirit drinks sold in bulk. The bill also clarifies that sacramental wine is nontaxable when used by churches and allows for the importation of such wines without restrictions, although the commission may create rules to prevent abuse.

Furthermore, the bill introduces provisions for the incorporation of farm mutual cooperative wineries, which must be licensed and can produce wine on the premises of their members. It allows wine makers or manufacturers to designate wholesalers to pay taxes on their behalf, with specific reporting requirements to the commission. The commission is tasked with establishing rules for tax collection and reporting, with a stipulation that tax payments cannot be required more frequently than quarterly. The bill also includes a provision that exempts this section from applying after the effective date of the amendatory act that added this subsection.

Statutes affected:
House Introduced Bill: 436.1301