Committee approves amendment to House Bill 5510 to reclassify some low-proof spirits and add tax

The Senate Finance Committee on March 16 adopted an amendment to House Bill 5510 that would change how some mixed alcoholic beverages are regulated and taxed.

Counsel explained the amendment would incorporate provisions from Senate Bill 1065 that modernize licensing and fees for the Alcohol Beverage Control Commission and would adopt language from Senate Bill 928 to treat certain "low proof spirit alcohol products" the same as beer, rather than as liquor. Counsel said the bill defines those products as drinks ranging from 0.5% to 14% alcohol by volume, mixed with another ingredient and sold in containers of 24 fluid ounces or fewer, and would allow distributors to move the product through the state without the current bailment process. Counsel added the measure would impose a $0.25-per-gallon tax on the defined low-proof spirit products.

Vice Chairman moved adoption of the strike-and-insert amendment and the committee approved it. The vice chairman then moved that the amended House Bill 5510 be reported to the full Senate with a recommendation that it pass; that motion was approved.

The committee did not record a roll-call vote with member names in the transcript; the transcript records the ayes and noes verbally. The amendment as adopted will be reported to the full Senate for further consideration.