The bill amends the Michigan Liquor Control Code of 1998, specifically section 409, to update the tax collection process for beer manufactured or sold in the state. It establishes that the tax of $6.30 per barrel must be paid by the brewer or brewpub if the beer is produced in Michigan, or by the wholesaler if the beer is imported. The bill clarifies that after January 31, 2015, the tax must be levied based on the actual number of barrels sold to licensed retailers, and brewers can designate a wholesaler to pay the tax on their behalf. Additionally, the commission is tasked with creating rules for tax collection and reporting requirements, with a stipulation that tax payments cannot be required more frequently than quarterly.

Furthermore, the bill introduces a tax rebate provision for beer shipped out of state and specifies that certain types of beer consumption, such as on-premises consumption at brewpubs or microbreweries, are subject to the tax. It also allows eligible brewers, defined as those producing no more than 60,000 barrels annually, to claim a credit of $2.00 per barrel for the first 30,000 barrels. Lastly, the bill 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: 436.1409