LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 252 HLS 21RS 641
Bill Text Version: ORIGINAL
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: April 30, 2021 3:17 PM Author: LANDRY
Dept./Agy.: LDR/ATC
Subject: Excise Tax Exemption: Brewers Under 250 kbbl per Year Analyst: Benjamin Vincent
TAX CREDITS OR DECREASE GF RV See Note Page 1 of 1
Exempts certain beverages from state excise tax
Present law levies a tax of $12.50/bbl on malt beverages and beverages of low alcoholic content.
Proposed law exempts beverages produced by a brewer producing less than 250,000 barrels of such beverage per year from
the excise tax.
Effective July 1, 2021.
EXPENDITURES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. SEE BELOW $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0
REVENUES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. DECREASE DECREASE DECREASE DECREASE DECREASE
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
EXPENDITURE EXPLANATION
LDR anticipates that adding exemptions to the excise tax will require some expenditures for tax return form redesign, and
for computer system modification, development, and testing, estimated at $51,000 of staff time. ATC does not anticipate
any additional costs due to proposed law.
REVENUE EXPLANATION
Proposed law would exempt purchases of malt and low alcoholic content beverages from the excise tax, provided that the
brewer produces less than 250,000 barrels of the beverage. Proposed law would reduce state general fund revenues to an
indeterminable extent.
Information on production volumes for such beverages brewed outside the state is not collected, thus the likely effect of
exempting beverages brewed outside the state is indeterminable. However, of the approximately 25 brewers in the state,
ATC reports that none of them produce more than 250,000 barrels annually. Based on recent sales volumes of these
beverages, the excise tax impact of exempting these purchases of beverages brewed in the state would be a reduction of
$700,000 annually. This figure represents a lower bound of proposed law’s likely impact, as some beverages brewed outside
the state would likely qualify for the exemption.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Gregory V. Albrecht
x 13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} Chief Economist
or a Net Fee Decrease {S}