Introduced Version
HOUSE BILL No. 1326
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 7.1-3-25; IC 7.1-4; IC 7.1-5-11-1.5.
Synopsis: Direct shipment of wine. Allows a vintner located outside
Indiana to ship wine directly to an Indiana resident for personal use if
the vintner holds an out-of-state shipper's permit. Requires the holder
of an out-of-state shipper's permit to pay the sales tax and excise tax on
wine directly shipped to an Indiana resident.
Effective: July 1, 2004.
Dobis, Kuzman
January 15, 2004, read first time and referred to Committee on Public Policy, Ethics and
Veterans Affairs.
Introduced
Second Regular Session 113th General Assembly (2004)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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HOUSE BILL No. 1326
A BILL FOR AN ACT to amend the Indiana Code concerning
alcoholic beverages and tobacco.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 7.1-3-25; (04)IN1326.1.1. -->
SECTION 1. IC 7.1-3-25 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]:
Chapter 25. Direct Shipment of Wine
Sec. 1. As used in this chapter, "seller" refers to a person who
holds a permit:
(1) issued by a state other than Indiana; and
(2) that is the equivalent of a vintner's permit issued under
this title.
Sec. 2. A seller may ship, transport, or consign not more than
twenty-four (24) bottles of wine each month from a location outside
Indiana to a person in Indiana who does not hold a valid
wholesaler permit under this title if:
(1) the person who orders and receives the direct wine
shipment is at least twenty-one (21) years of age; and
(2) the seller obtains an out-of-state shipper's permit under
this chapter.
Sec. 3. A person in Indiana who is at least twenty-one (21) years
of age may:
(1) order or purchase wine in person or by mail, facsimile
transmission (fax), telephone, computer network (as defined
in IC 35-43-2-3(a)), or other device from a seller who holds an
out-of-state shipper's permit under this chapter; and
(2) receive direct shipments of wine for personal use and not
for resale.
Sec. 4. Before sending a shipment to a person in Indiana, a seller
shall:
(1) submit an application to the commission for an out-of-state
shipper's permit on a form prescribed by the commission;
(2) pay a one hundred dollar ($100) registration fee;
(3) provide a copy of the seller's current alcoholic beverage
license issued by the other state; and
(4) provide any other information required by the
commission.
Sec. 5. An out-of-state shipper's permit remains in effect for one
(1) calendar year, including the day the permit is granted as set
forth in IC 7.1-3-1-3.
Sec. 6. The holder of an out-of-state shipper's permit shall:
(1) ensure that a container of wine shipped directly to a
person in Indiana is conspicuously labeled with the words:
"CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE
21 OR OLDER REQUIRED FOR DELIVERY.";
(2) report to the commission annually the information set
forth in section 9 of this chapter;
(3) annually pay to the department of state revenue all sales
taxes and excise taxes due on the sales to residents of Indiana
in the preceding calendar year, calculating the amount of the
taxes as if the sale were in Indiana at the location where the
delivery was made;
(4) allow the commission or the department of state revenue
to perform an audit of the out-of-state shipper's records on
request; and
(5) be considered to have consented to the jurisdiction of the
commission, any other state agency, and Indiana courts
concerning enforcement of this chapter and any related laws
or rules.
Sec. 7. A holder of an out-of-state shipper's permit may
annually renew the permit by submitting the following to the
commission:
(1) An application for renewal on a form prescribed by the
commission.
(2) A renewal fee of fifty dollars ($50).
Sec. 8. The fees collected under this chapter shall be deposited
in the enforcement and administration fund under IC 7.1-4-10.
Sec. 9. An out-of-state shipper must submit a report to the
commission not later than January 31 of each year, on a form
prescribed by the commission, that contains the following
information concerning shipments made under this chapter:
(1) The identity, quantity, and price of all wine shipped into
Indiana during the previous calendar year.
(2) Other information required by the commission to
implement this chapter.
Sec. 10. The commission and the department of state revenue
may adopt rules under IC 4-22-2 to implement this chapter.
Sec. 11. A person who violates this chapter is subject to the
penalties set forth in IC 7.1-5-11.
Sec. 12. The commission may revoke an out-of-state shipper's
permit for the failure to pay the excise taxes when required to do
so by this title. The action of the commission is final.
SOURCE: IC 7.1-4-4-3; (04)IN1326.1.2. -->
SECTION 2. IC 7.1-4-4-3, AS AMENDED BY P.L.201-1999,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 3. Persons Liable for Tax. The wine excise tax
shall be paid by the holder of the following:
(1) A vintner's permit, a farm winery permit, a wine wholesaler's
permit, a dining car wine permit, or a boat wine permit on the
alcoholic beverage to which the tax is applicable and which has
been manufactured or imported by him the permit holder into
this state. Indiana.
(2) An out-of-state shipper's permit on the wine to which the
tax is applicable and that has been shipped by the permit
holder into Indiana.
However, the same article shall be taxed only once for wine excise tax
purposes.
SOURCE: IC 7.1-4-6-1; (04)IN1326.1.3. -->
SECTION 3. IC 7.1-4-6-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 1.
Power of
Commission and Department. The chairman and the department shall
have the power to examine the books, papers, records, and premises of
a manufacturer, wholesaler, retailer,
or dealer,
or holder of an
out-of-state shipper's permit under this title for the purpose of
determining whether the excise taxes imposed by this title have been
paid fully and whether the provisions of the title are being complied
with.
SOURCE: IC 7.1-4-7-1; (04)IN1326.1.4. -->
SECTION 4. IC 7.1-4-7-1, AS AMENDED BY P.L.235-2001,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 1. Collection of Annual License Fees. The
chairman shall collect the required annual license fee paid in
connection with the issuance of a brewer's permit, a beer wholesaler's
permit, a temporary beer permit, a dining car permit of any type, a boat
permit of any type, a distiller's permit, a rectifier's permit, a liquor
wholesaler's permit, a vintner's permit, a farm winery permit, a farm
winery brandy distiller's permit, a wine wholesaler's permit, a wine
bottler's permit, a temporary wine permit, an out-of-state shipper's
permit, a salesman's permit, and a carrier's alcoholic permit.
SOURCE: IC 7.1-5-11-1.5; (04)IN1326.1.5. -->
SECTION 5. IC 7.1-5-11-1.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 1.5. (a)
Except as
provided in subsection (b), it is unlawful for a person in the business
of selling alcoholic beverages in another state or country to ship or
cause to be shipped an alcoholic beverage directly to an Indiana
resident who does not hold a valid wholesaler permit under this title.
This includes the ordering and selling of alcoholic beverages over a
computer network (as defined by IC 35-43-2-3(a)).
(b)
A seller (as defined by IC 7.1-3-25-1) may ship, transport, or
consign wine from a location outside Indiana directly to an Indiana
resident who does not hold a valid wholesaler permit if the seller:
(1) holds an out-of-state shipper's permit; and
(2) satisfies the other requirements;
under IC 7.1-3-25.
(c) Upon a determination by the commission that a person has
violated subsection (a)
or (b), a wholesaler
or an Indiana resident
may not accept a shipment of:
(1) alcoholic beverages from
the a person
who violates
subsection (a); or
(2) wine from a seller who violates subsection (b);
for a period of up to one (1) year as determined by the commission.
(c) (d) The commission shall adopt rules under IC 4-22-2 to
implement this section.