SB 169

Under current law, the state imposes an occupational tax on selling intoxicating

liquor in this state. Liability for the tax is incurred, generally, by a shipper when the

liquor is shipped into this state, except that liability on liquor produced or bottled in

this state or imported directly from a foreign country into this state by a person

holding a Wisconsin permit is incurred at the time of first sale.

Under this bill, the liability for the tax imposed on intoxicating liquor is

incurred:

1. By a shipper when the liquor is shipped into this state.

2. By a person holding a Wisconsin permit when the liquor is received into this

state or removed from a federal bonded premise, whichever is later, if it is imported

directly from a foreign country into this state by a Wisconsin permittee.

3. By a Wisconsin winery, manufacturer, or rectifier when intoxicating liquor

is removed from a federal bonded premise, if it is produced, bottled, manufactured,

or rectified in this state by a Wisconsin winery, manufacturer, or rectifier.

4. By a Wisconsin rectifier at the time of first sale, if the rectifier had more than

50 percent of its previous calendar year's sales of intoxicating liquor sold outside

Wisconsin.

The bill defines "first sale" as the first sale of finished, nonbulk, intoxicating

liquor, packaged in containers suitable for sale to consumers or to retailers or other

persons holding valid permits.

Under current law, when intoxicating liquor is stored in an alcohol beverage

warehouse by a manufacturer or rectifier as a pledge, it is not necessary to affix front

labels to the containers until the liquor is sold or removed from the warehouse. When

it becomes necessary for a pledgee to sell the liquor in good faith pursuant to the

terms of the pledge, it must be sold to a manufacturer, rectifier, or wholesaler for the

purpose of affixing front labels to the containers. The sales are then reported to the

Department of Revenue.