Sec. 1. 28-A MRSA §1652, sub-§1, as repealed and replaced by PL 1987, c. 342, §116, is amended to read:

1. Excise tax on malt liquor and wine. An excise tax is imposed on the privilege of manufacturing and selling malt liquor, wine and low-alcohol spirits products in the State. The Maine manufacturer or importing wholesale licensee shall pay an excise tax of 25¢ per gallon on all malt liquor 1__for each 1/10 of an ounce of 100% alcohol sold in the State in malt beverages, hard cider, wine and low-alcohol spirits products.

Sec. 2. 28-A MRSA §1652, sub-§2, as amended by PL 1997, c. 767, §4, is repealed.

Sec. 3. 28-A MRSA §1703, sub-§3, ¶A, as amended by PL 1997, c. 767, §6, is repealed.

Sec. 4. 28-A MRSA §1703, sub-§3, ¶A-1 is enacted to read:

A-1.__Two tenths of one cent for each 1/10 of an ounce of 100% alcohol sold in the State in malt beverages, hard cider, wine and low-alcohol spirits products; and

Sec. 5. 28-A MRSA §1703, sub-§3, ¶B, as enacted by PL 1987, c. 45, Pt. A, §4, is repealed.

Sec. 6. 28-A MRSA §1703, sub-§3, ¶C, as amended by PL 1993, c. 462, §9, is repealed.

SUMMARY

Current taxes on beer and wine are imposed in 2 components, an excise tax and a premium tax. The excise tax goes to the General Fund; the premium tax, added in 1981, supports a fund for the prevention of alcoholism. The 2 taxes may be summarized as follows:

Approx. Tax Per

Excise Tax Premium Tax Ounce of Alcohol

Beer: 25¢ per gal. 10¢ per gal. 6.8¢

Wine: 30¢ per gal. 30¢ per gal. 3.9¢

Sparkling wine: $1 per gal. 24¢ per gal. 8.1¢

The calculation of tax per ounce of alcohol in the right-hand column is based on the assumption that beer is 4% alcohol and that wine is 12%. Beer is usually between 3% and 6% alcohol; and wine is usually between 11% and 14%.