128th MAINE LEGISLATURE
		LD 794		LR 1674(01)
	An Act Regarding the Taxation of Flavored Malt Beverages
	Preliminary Fiscal Impact Statement for Original Bill
	Sponsor: Rep. Guerin of Glenburn
	Committee: Veterans and Legal Affairs
	Fiscal Note Required: Yes
Preliminary Fiscal Impact Statement
			FY 2017-18	FY 2018-19	Projections  FY 2019-20	Projections  FY 2020-21
Net Cost (Savings)
	General Fund		$892,500	$1,190,000	$1,190,000	$1,190,000
Revenue
	General Fund		($892,500)	($1,190,000)	($1,190,000)	($1,190,000)
Fiscal Detail and Notes
	Under current statute low-alcohol spirits products are taxed at $1.24 per gallon and malt beverages and wine are taxed at $0.35 per gallon. This bill clarifies that the addition of high-alcohol content food flavorings or similar products that are used solely to impart flavor during the production process does not cause these products to be taxed at the higher rate. The State has been taxing these products at the higher $1.24 per gallon rate and will now tax them at the lower $0.35 per gallon rate. This change will reduce General Fund revenue collected by the Bureau of Alcoholic Beverages and Lottery Operations by an estimated $892,500 in fiscal year 2017-18 and $1,190,000 in fiscal year 2018-19.