The manufacture, sale, and taxation of powdered alcohol. (FE)

This bill modifies the definition of “intoxicating liquor” to include, with limited exceptions, any substance that is sold in powder or crystalline form, that contains more than 0.4 percent alcohol by weight, and that is fit for human consumption either in its powder or crystalline form or after it is added to food or mixed with water or another liquid (powdered alcohol). As a result, under the bill, powdered alcohol may be sold to consumers only by licensed retailers, may be manufactured in this state only by persons holding a manufacturer's permit issued by the Department of Revenue, may be distributed in this state only by persons holding a wholesaler's permit issued by DOR, and may be shipped from another state into this state only by persons who are the product's primary source of supply and hold an out-of-state shipper's permit issued by DOR. The bill includes exceptions for powdered alcohol used for certain purposes, including powdered alcohol used by hospitals or for scientific research or other medicinal, pharmaceutical, industrial, or nonbeverage purposes.

The bill also imposes the same occupational tax on powdered alcohol that applies to other forms of intoxicating liquor. For powdered alcohol, this tax is calculated on the volume of the product that results after it has been mixed according to the package instructions.