PRINTER'S NO. 1773
No. 1427 Session of 2003
INTRODUCED BY DeWEESE AND VEON, MAY 12, 2003
REFERRED TO COMMITTEE ON FINANCE, MAY 12, 2003
AN ACT
1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2 act relating to tax reform and State taxation by codifying
3 and enumerating certain subjects of taxation and imposing
4 taxes thereon; providing procedures for the payment,
5 collection, administration and enforcement thereof; providing
6 for tax credits in certain cases; conferring powers and
7 imposing duties upon the Department of Revenue, certain
8 employers, fiduciaries, individuals, persons, corporations
9 and other entities; prescribing crimes, offenses and
10 penalties," further providing, in malt beverage tax, for
11 imposition.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 2003 of the act of March 4, 1971 (P.L.6,
15 No.2), known as the Tax Reform Code of 1971, added December 22,
16 1989 (P.L.775, No.110), is amended to read:
17 Section 2003. Imposition of Tax.--(a) (1) Each
18 manufacturer shall be subject to pay to the Commonwealth the
19 taxes imposed by this section upon all malt or brewed beverages
20 manufactured and sold by him in this Commonwealth for use in
21 this Commonwealth or manufactured by him outside this
22 Commonwealth and sold to an importing distributor or any person
1 for importation into, and use in, this Commonwealth.
2 (2) Every person who ships or transports malt or brewed
3 beverages into this Commonwealth for sale, delivery or storage
4 in this Commonwealth shall pay to the Commonwealth the taxes
5 imposed in this section.
6 (b) (1) Such taxes, payable in the manner prescribed in
7 subsections (a) and (b) of section 2004 of this article, shall
8 be imposed at the rate [of two-thirds cent (2/3¢) per half pint
9 of eight (8) fluid ounces or fraction thereof, and in larger
10 quantities at the rate of one cent (1¢) per pint of sixteen (16)
11 fluid ounces or fraction thereof.] set forth in paragraph (2).
12 (2) The tax rates per original container or standard
13 fraction thereof are as follows:
14 Standard Malt Beverage
15 Fraction Tax Rate Volume
16 [1 barrel $2.48 31 gal.
17 1/2 barrel 1.24 15 1/2 gal.
18 1/3 barrel .84 10 1/3 gal.
19 1/4 barrel .62 7 3/4 gal.
20 1/6 barrel .42 5 1/6 gal.
21 1/8 barrel .32 3 7/8 gal.
22 1 gallon .08
23 1/2 gallon .04
24 1 quart .02
25 1 pint .01
26 1/2 pint .0066]
27 1 barrel $7.75 31 gal.
28 1/2 barrel 3.875 15 1/2 gal.
29 50 liters 3.3125
30 12 gallon keg 3.00
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1 10.8 gallon keg 2.75
2 30 liters 2.00
3 1/4 barrel 1.9375 7 3/4 gal.
4 1/6 barrel 1.3125 5 1/6 gal.
5 1/8 barrel 1.00 3 7/8 gal.
6 5 liters 0.3438
7 1 gallon 0.25
8 3 liters 0.2188
9 2 liters 0.1563
10 64 ounces 0.125
11 40 ounces 0.0938
12 1 liter 0.0938
13 1 quart 0.0625
14 1 pint 0.0313
15 1/2 pint 0.0206
16 (3) If the volume of malt beverage in the container is not
17 one of the standard fractions listed in paragraph (2), then the
18 tax imposed on the container shall be the tax imposed on the
19 next highest standard fraction.
20 (c) If the tax shall not be paid when due, there shall be
21 added to the amount of the tax as a penalty a sum equivalent to
22 ten per cent of the amount of the tax, and in addition thereto
23 interest on the tax and penalty at the rate of one per cent per
24 month or fraction of a month from the date the tax became due
25 until paid. Nothing herein contained shall be construed to
26 relieve any person otherwise liable from liability for payment
27 of the tax.
28 (d) (1) Notwithstanding any other provision of this
29 article, a manufacturer or his agent who fails to file the
30 required monthly return and pay when due the tax imposed under
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1 this article shall be declared delinquent by the Secretary of
2 Revenue and shall continue to be delinquent until he files the
3 required monthly return and pays the tax.
4 (2) During a period of delinquency no malt or brewed
5 beverages in possession or control of a manufacturer may be
6 removed from his licensed premises for sale in the Commonwealth,
7 nor shipped in from outside the Commonwealth.
8 (e) In the event that any state, territory or country shall
9 impose upon malt or brewed beverages, which have been
10 manufactured in Pennsylvania, a higher tax or fee than is
11 imposed upon malt or brewed beverages manufactured within such
12 state, territory or country, every manufacturer whose malt or
13 brewed beverages manufactured within such state, territory or
14 country are sold to an importing distributor or any person for
15 importation into, and use in, this Commonwealth shall, as to
16 such beverages, pay to this Commonwealth, in addition to the tax
17 imposed by this section, a tax equal to such excess tax or fee
18 which is imposed in such state, territory or country on
19 Pennsylvania manufactured malt or brewed beverages. Such
20 additional tax shall be levied, assessed and collected in the
21 same manner as the other taxes imposed by this article.
22 (f) Manufacturers whose malt or brewed beverages are sold in
23 this Commonwealth or are sold to importing distributors or any
24 person for importation into, and use in, this Commonwealth shall
25 be liable to the Commonwealth as taxpayers for the payment of
26 the taxes imposed by this article.
27 Section 2. The amendment of section 2003 of the act shall
28 apply to sales made after June 30, 2003.
29 Section 3. This act shall take effect as follows:
30 (1) The following provisions shall take effect
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1 immediately.
2 (i) Section 2 of this act.
3 (ii) This section.
4 (2) The amendment of section 2003 of the act shall take
5 effect July 1, 2003, or immediately, whichever is later.
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