STATEMENT OF PURPOSE
RS28558 / H0232
This legislation will regulate all beer products regardless of alcohol content and will change the standard of
measurement from alcohol by weight to alcohol by volume to align Idaho law with Federal laws. This legislation
authorizes over the course of three years, 5% of tax revenues derived from “strong beer” to be reallocated from
the Idaho Grape Growers and Wine Producers Commission to the Idaho Hop Growers Commission. This
reallocation would reduce the Idaho Grape Growers & Wine Producers Commission budget by approximately
$146,335.20. This Legislation makes the Idaho Grape & Wine Commission’s budget whole again by increasing
the Commission’s current percentage of the wine excise tax allocation (only the wine that is produced and sold
in Idaho) to eighty-eight percent (88%) over the course of three years. In 1988 legislation was passed and
signed into law that made “strong beer” (beer exceeding 4% alcohol by weight) considered and taxed as wine.
In 1994 legislation was passed and signed into law that authorized the Idaho Grape Growers & Wine Producers
Commission to receive 5% of the total wine excise tax (for both in-state and out-of-state wine that is sold.)
Almost 50% of all wine excise taxes are derived from strong beer sales.
FISCAL NOTE
There will be a fiscal impact to the general fund in the amount of approximately $37,413.19 in Fiscal Year
2022; $89,216.07 in Fiscal Year 2023 and $143,896.89 in Fiscal Year 2024 and beyond. These funds would be
allocated to the Idaho Grape Growers & Wine Producers account to make that account whole again.
Contact:
Representative James Holtzclaw
(208) 332-1000
Representative Caroline Nilsson Troy
(208) 332-1000
Roger Batt
(208) 888-0988
Nate Fisher
(208) 867-3152
DISCLAIMER: This statement of purpose and fiscal note are a mere attachment to this bill and prepared by a proponent
of the bill. It is neither intended as an expression of legislative intent nor intended for any use outside of the legislative
process, including judicial review (Joint Rule 18).
Statement of Purpose / Fiscal Note Bill SOP/FN INTRODUCED: 02/23/2021, 9:37 AM


Statutes affected:
Bill Text: 23-1002, 23-1008, 23-1319