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 from outside the state. 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 for sale and consumption, and it defines a barrel of beer as containing 31 gallons. It allows the commission to create rules regarding wholesalers in other states that impose additional fees or restrictions on Michigan beer, and it provides a credit or refund of $2.00 per barrel for eligible brewers producing up to 60,000 barrels annually. Notably, the bill includes a provision stating that the section will no longer apply after the effective date of the amendatory act that added this subsection.

Statutes affected:
House Introduced Bill: 436.1409