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Sub. S. B. No. 48 As Passed by the HouseAs Passed by the House
130th General Assembly | Regular Session | 2013-2014 |
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Cosponsors:
Senators Hite, Burke, Faber, Seitz
Representatives Dovilla, Buchy, Gerberry, Cera, Clyde, Adams, R., Anielski, Antonio, Baker, Barborak, Beck, Bishoff, Blair, Boose, Brown, Burkley, Carney, Celebrezze, Damschroder, DeVitis, Foley, Grossman, Hackett, Hagan, C., Hagan, R., Hall, Heard, Henne, Hill, Hottinger, Lynch, Maag, McClain, McGregor, Milkovich, O'Brien, Pillich, Ramos, Retherford, Rogers, Rosenberger, Scherer, Sears, Slesnick, Smith, Stinziano, Strahorn, Szollosi, Wachtmann, Winburn, Young Speaker Batchelder
A BILL
To amend sections 1333.84, 4301.24, 4301.47, 4303.02,
4303.021, 4303.06, 4303.20, 4303.29, 4303.33, and
4303.332 and to enact section 4303.022 of the
Revised Code to prohibit a distributor or
manufacturer of alcoholic beverages from taking
certain actions regarding the awarding or
acquiring of franchises or distribution
territories, to create the A-1c liquor permit for
beer manufacturers that produce beer below
specified quantities, to limit the A-1 liquor
permit to beer manufacturers that produce beer
above specified quantities, to alter requirements
related to the A-1 liquor permit, and to make
certain changes regarding liquor permit quotas.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 1333.84, 4301.24, 4301.47, 4303.02,
4303.021, 4303.06, 4303.20, 4303.29, 4303.33, and 4303.332 be
amended and section 4303.022 of the Revised Code be enacted to
read as follows:
Sec. 1333.84. Notwithstanding the terms of any franchise, no
manufacturer or distributor engaged in the sale and distribution
of alcoholic beverages, or a subsidiary of any such manufacturer,
shall:
(A) Fail to act in good faith or without just cause in acting
or purporting to act under the terms of a franchise or in
cancelling or failing to renew a franchise;
(B) Award an additional franchise for the sale of the same
brand within the same sales area or territory. No franchise
prohibits a retail permit holder having permits at more than one
location from buying from one or more B-2 or B-5 permit holders,
even if all permit premises are not located in the same franchise
area or territory. Nothing contained in this division shall be
construed as modifying the provisions of section 4301.241 of the
Revised Code. Nothing contained in this division precludes a
manufacturer of wine from awarding a franchise, or requires a
manufacturer of wine to award a franchise, for the sale of a new
brand to any B-2 or B-5 permit holder;.
(C) Require a distributor to submit profit and loss
statements, balance sheets, or financial records as a requirement
to retain its franchise;
(D) Without reasonable cause, withhold delivery of alcoholic
beverages ordered by a distributor, or change or amend a
distributor's quota of a manufacturer's product or brand;
(E) Coerce a distributor by any means to participate in or
contribute to any local or national advertising fund controlled
directly or indirectly by a manufacturer;
(F) Refuse to recognize the rights of surviving partners,
shareholders, or heirs and fail to act in good faith in accordance
with reasonable standards for fair dealing, with respect to the
distributor's right to sell, assign, transfer or otherwise dispose
of his the distributor's business, in all or in part, except that
the distributor shall have no right to sell, assign, or transfer
the franchise without the prior consent of the manufacturer, who
shall not unreasonably withhold his the manufacturer's consent.
(G)(1) On and after the effective date of this amendment, do
either of the following:
(a) Award a distribution franchise or territory to itself, to
a subsidiary, or to another entity in which it has any financial
interest, directly or indirectly, by stock ownership, or through
interlocking directors in a corporation, or otherwise, if that
franchise, territory, or portion of that territory has been
previously awarded, sold, assigned, or transferred to a
distributor;
(b) Acquire a franchise or territory if that franchise,
territory, or portion of that territory has been previously
awarded, sold, assigned, or transferred to a distributor.
(2) Division (G)(1) of this section does not prohibit a
manufacturer or subsidiary of a manufacturer from continuing to
operate a distribution franchise or distribute alcoholic beverages
within a designated territory if prior to the effective date of
this amendment the manufacturer either acquired the distribution
franchise or territory, or awarded the franchise or territory to
itself or a subsidiary.
(3) Division (G)(1) of this section does not, and shall not
be construed to, limit the actions that may be taken in accordance
with an A-1c permit under section 4303.022 of the Revised Code or
a B-2a permit under section 4303.071 of the Revised Code.
(4) Notwithstanding division (G)(1) of this section or any
permit requirement under sections 4303.06, 4303.07, 4303.071,
4303.08, 4303.09, and 4303.10 of the Revised Code, if a
distribution franchise is canceled or territory is substantially
changed by a manufacturer pursuant to either division (A)(1) or
(2) of section 1333.85 of the Revised Code, the manufacturer may
acquire or award itself the franchise or territory for not longer
than one hundred eighty days from the date of cancellation. After
the one hundred eighty day period, the manufacturer shall sell or
transfer the franchise or territory to a distributor in which the
manufacturer does not have any financial interest, directly or
indirectly, by stock ownership, or through interlocking directors
in a corporation, or otherwise.
Sec. 4301.24. (A) Except as provided in section 4301.242 of
the Revised Code, no manufacturer shall aid or assist the holder
of any permit for sale at wholesale, and no manufacturer or
wholesale distributor shall aid or assist the holder of any permit
for sale at retail, by gift or loan of any money or property of
any description or other valuable thing, or by giving premiums or
rebates. Except as provided in section 4301.242 of the Revised
Code, no holder of any such permit shall accept the same, provided
that the manufacturer or wholesale distributor may furnish to a
retail permittee the inside signs or advertising and the tap signs
or devices authorized by divisions (E) and (F) of section 4301.22
of the Revised Code.
(B) No manufacturer shall have any financial interest,
directly or indirectly, by stock ownership, or through
interlocking directors in a corporation, or otherwise, in the
establishment, maintenance, or promotion in the business of any
wholesale distributor. No retail permit holder shall have any
interest, directly or indirectly, in the operation of, or any
ownership in, the business of any wholesale distributor or
manufacturer.
(C)(1) No manufacturer shall, except as authorized by section
4303.021 of the Revised Code, have any financial interest,
directly or indirectly, by stock ownership, or through
interlocking directors in a corporation, or otherwise, in the
establishment, maintenance, or promotion of the business of any
retail dealer. No wholesale distributor or employee of a wholesale
distributor shall have any financial interest, directly or
indirectly, by stock ownership, interlocking directors in a
corporation, or otherwise, in the establishment, maintenance, or
promotion of the business of any retail dealer. No manufacturer or
wholesale distributor or any stockholder of a manufacturer or
wholesale distributor shall acquire, by ownership in fee,
leasehold, mortgage, or otherwise, directly or indirectly, any
interest in the premises on which the business of any other person
engaged in the business of trafficking in beer or intoxicating
liquor is conducted. All
(2) All contracts, covenants, conditions, and limitations
whereby any person engaged or proposing to engage in the sale of
beer or intoxicating liquors promises to confine the person's
sales of a particular kind or quality of beer or intoxicating
liquor to one or more products, or the products of a specified
manufacturer or wholesale distributor, or to give preference to
those products, shall to the extent of that promise be void. The
making of a promise in any such form shall be cause for the
revocation or suspension of any permit issued to any party. This
section does not prevent the holder of an A permit from securing
and holding a wholesale distributor's permit or permits and
operating as a wholesale distributor.
(D) No manufacturer shall sell or offer to sell to any
wholesale distributor or retail permit holder, no wholesale
distributor shall sell or offer to sell to any retail permit
holder, and no wholesale distributor or retail permit holder shall
purchase or receive from any manufacturer or wholesale
distributor, any beer, brewed beverages, or wine manufactured in
the United States except for cash. No right of action shall exist
to collect any claims for credit extended contrary to this
section. This
This section does not prohibit a licensee from crediting to a
purchaser the actual prices charged for packages or containers
returned by the original purchaser as a credit on any sale or from
refunding to any purchaser the amount paid by that purchaser for
containers or as a deposit on containers when title is retained by
the vendor, if those containers or packages have been returned to
the manufacturer or distributor. This section does not prohibit a
manufacturer from extending usual and customary credit for beer,
brewed beverages, or wine manufactured in the United States and
sold to customers who live or maintain places of business outside
this state when the beverages so sold are actually transported and
delivered to points outside this state.
No
No wholesale or retail permit shall be issued to an applicant
unless the applicant has paid in full all accounts for beer or
wine, manufactured in the United States, outstanding as of
September 6, 1939. No beer or wine manufactured in the United
States shall be imported into the state unless the beer or wine
has been paid for in cash, and no supplier registration for any
such beer or wine manufactured in the United States shall be
issued by the division of liquor control until the A-2, B-1, or
B-5 permit holder establishes to the satisfaction of the division
that the beer or wine has been paid for in cash.
(E) This section does not prevent a manufacturer from
securing and holding any financial interest, directly or
indirectly, by stock ownership or through interlocking directors
in a corporation, or otherwise, in the establishment, maintenance,
or promotion of the business or premises of any C or D permit
holder, provided that the following conditions are met:
(A)(1) Either the manufacturer or one of its parent companies
is listed on a national securities exchange.
(B)(2) All purchases of alcoholic beverages by the C or D
permit holder are made from wholesale distributors in this state
or agency stores licensed by the division of liquor control.
(C)(3) If the C or D permit holder sells brands of alcoholic
beverages that are produced or distributed by the manufacturer
that holds the financial interest, the C or D permit holder also
sells other competing brands of alcoholic beverages produced by
other manufacturers, no preference is given to the products of the
manufacturer, and there is no exclusion, in whole or in part, of
products sold or offered for sale by other manufacturers,
suppliers, or importers of alcoholic beverages that constitutes a
substantial impairment of commerce.
(D)(4) The primary purpose of the C or D permit premises is a
purpose other than to sell alcoholic beverages, and the sale of
other goods and services exceeds fifty per cent of the total gross
receipts of the C or D permit holder at its premises.
(F)(1) This section does not prevent a manufacturer from
giving financial assistance to the holder of a B permit for the
purpose of the holder purchasing an ownership interest in the
business, existing inventory and equipment, or property of another
B permit holder, including, but not limited to, participation in a
limited liability partnership, limited liability company, or any
other legal entity authorized to do business in this state. This
(2) This section does not permit a manufacturer to give
financial assistance to the holder of a B permit to purchase
inventory or equipment used in the daily operation of a B permit
holder.
(G) This section does not prohibit a manufacturer or
subsidiary of a manufacturer from continuing to operate a
wholesale distribution franchise or distribute beer or wine within
a designated territory if prior to the effective date of this
amendment the manufacturer either acquired the distribution
franchise or territory, or awarded the franchise or territory to
itself or a subsidiary.
(H) This section does shall not prevent a manufacturer from
securing and holding a an A-1c or B-2a permit or permits and
operating as a wholesale distributor pursuant to such permits.
Sec. 4301.47. Every class A-1, A-1c, A-2, and A-4 permit
holder and each class B or S permit holder shall maintain and keep
for a period of three years a record of the beer, wine, and mixed
beverages purchased, distributed, or sold within this state by the
permit holder, together with invoices, records, receipts, bills of
lading, and other pertinent papers required by the tax
commissioner and, upon demand by the tax commissioner, shall
produce these records for a three-year period prior to the demand
unless upon satisfactory proof it is shown that the nonproduction
is due to causes beyond the permit holder's control.
Sec. 4303.02. Permit A-1 may be issued to a manufacturer to
manufacture beer and sell beer products in bottles or containers
for home use and to retail and wholesale permit holders under
rules adopted by the division of liquor control if the
manufacturer's total production of beer, wherever produced, will
exceed thirty-one million gallons in a calendar year. In addition,
an A-1 permit holder may sell beer manufactured on the premises at
retail, by individual drink in a glass or from a container, for
consumption on the premises where sold. The fee for this permit is
three thousand nine hundred six dollars for each plant during the
year covered by the permit.
Sec. 4303.021. (A) Permit A-1-A may be issued to the holder
of an A-1, A-1c, or A-2 permit to sell beer and any intoxicating
liquor at retail, only by the individual drink in glass or from a
container, provided such that one of the following applies to the
A-1-A permit premises are:
(1) It is situated on the same parcel or tract of land as the
related A-1, A-1c, or A-2 manufacturing permit premises or are
separated therefrom.
(2) It is separated from the parcel or tract of land on which
is located the A-1, A-1c, or A-2 manufacturing permit premises
only by public streets or highways or by other lands owned by the
holder of the A-1, A-1c, or A-2 permit and used by the holder in
connection with or in promotion of the holder's A-1, A-1c, or A-2
permit business.
(3) It is situated on a parcel or tract of land that is not
more than one-half mile from the A-1, A-1c, or A-2 manufacturing
permit premises. The
(B) The fee for this permit is three thousand nine hundred
six dollars.
The
(C) The holder of an A-1-A permit may sell beer and any
intoxicating liquor during the same hours as the holders of D-5
permits under this chapter or Chapter 4301. of the Revised Code or
the rules of the liquor control commission and shall obtain a
license as a retail food establishment or a food service operation
pursuant to Chapter 3717. of the Revised Code and operate as a
restaurant for purposes of this chapter.
(D) Except as otherwise provided in this section, no new
A-1-A permit shall be issued to the holder of an A-1, A-1c, or A-2
permit unless the sale of beer and intoxicating liquor under class
D permits is permitted in the precinct in which the A-1, A-1c, or
A-2 permit is located and, in the case of an A-2 permit, unless
the holder of the A-2 permit manufactures or has a storage
capacity of at least twenty-five thousand gallons of wine per
year. The immediately preceding sentence does not prohibit the
issuance of an A-1-A permit to an applicant for such a permit who
is the holder of an A-1 permit and whose application was filed
with the division of liquor control before June 1, 1994. The
liquor control commission shall not restrict the number of A-1-A
permits which may be located within a precinct.
Sec. 4303.022. Permit A-1c may be issued to a manufacturer
to manufacture beer and sell beer products in bottles or
containers for home use and to retail and wholesale permit holders
under rules adopted by the division of liquor control if the
manufacturer's total production of beer, wherever produced, will
not exceed thirty-one million gallons in a calendar year. In
addition, an A-1c permit holder may sell beer manufactured on
premises at retail, by individual drink in a glass or from a
container, for consumption on the premises where sold. The fee for
this permit is one thousand dollars for each plant during the year
covered by the permit.
Sec. 4303.06. Permit B-1 may be issued to a wholesale
distributor of beer to purchase from the holders of A-1 or A-1c
permits and to import and distribute or sell beer for home use and
to retail permit holders under rules adopted by the division of
liquor control. The fee for this permit is three thousand one
hundred twenty-five dollars for each distributing plant or
warehouse during the year covered by the permit.
Sec. 4303.20. Permit F may be issued to an association of
ten or more persons, a labor union, or a charitable organization,
or to an employer of ten or more persons sponsoring a function for
the employer's employees, to purchase from the holders of A-1,
A-1c, and B-1 permits and to sell beer for a period lasting not to
exceed five days. No more than two such permits may be issued to
the same applicant in any thirty-day period.
The special function for which the permit is issued shall
include a social, recreational, benevolent, charitable, fraternal,
political, patriotic, or athletic purpose but shall not include
any function the proceeds of which are for the profit or gain of
any individual. The fee for this permit is forty dollars.
Sec. 4303.29. (A) No permit, other than an H permit, shall
be issued to a firm or partnership unless all the members of the
firm or partnership are citizens of the United States. No permit,
other than an H permit, shall be issued to an individual who is
not a citizen of the United States. No permit, other than an E or
H permit, shall be issued to any corporation organized under the
laws of any country, territory, or state other than this state
until it has furnished the division of liquor control with
evidence that it has complied with the laws of this state relating
to the transaction of business in this state.
The division may refuse to issue any permit to or refuse to
renew any permit of any person convicted of any felony that is
reasonably related to the person's fitness to operate a liquor
permit business in this state. No holder of a permit shall sell,
assign, transfer, or pledge the permit without the written consent
of the division.
(B)(1) No D-3 permit shall be issued to any club unless the
club has been continuously engaged in the activity specified in
section 4303.15 of the Revised Code, as a qualification for that
class of permit, for two years at the time the permit is issued.
(2)(a) Subject to division (B)(2)(b) of this section, upon
application by properly qualified persons, one C-1 and C-2 permit
shall be issued for each one thousand population or part of that
population, and one D-1 and D-2 permit shall be issued for each
two thousand population or part of that population, in each
municipal corporation and in the unincorporated area of each
township.
Subject to division (B)(2)(b) of this section, not more than
one D-3, D-4, or D-5 permit shall be issued for each two thousand
population or part of that population in any municipal corporation
and in the unincorporated area of any township, except that, in
any city of a population of fifty-five thousand or more, one D-3
permit may be issued for each fifteen hundred population or part
of that population.
(b)(i) Division (B)(2)(a) of this section does not prohibit
the transfer of location or the transfer of ownership and location
of a C-1, C-2, D-1, D-2, D-3, or D-5 permit from a municipal
corporation or the unincorporated area of a township to an
economic development project located in another municipal
corporation or the unincorporated area of another township in
which no additional permits of that class may be issued to the
applicant under division (B)(2)(a) of this section. However, the
transfer may occur only if the applicant notifies the municipal
corporation or township to which the location of the permit will
be transferred regarding the transfer and the municipal
corporation or township acknowledges in writing to the division of
liquor control that the transfer will be to an economic
development project. The municipal corporation or township shall
submit the acknowledgment at the time the application for the
transfer is filed with the division.
The acknowledgment by the municipal corporation or township
does not prohibit it from requesting a hearing under section
4303.26 of the Revised Code. The applicant is eligible to apply
for and receive the transfer of location of the permit under
division (B)(2)(b) of this section if permits of that class that
may be issued under division (B)(2)(a) of this section in the
applicable municipal corporation or unincorporated area of the
township have already been issued or if the number of applications
filed for permits of that class in that municipal corporation or
the unincorporated area of that township exceed the number of
permits of that class that may be issued there under division
(B)(2)(a) of this section.
A permit transferred under division (B)(2)(b) of this section
may be subsequently transferred to a different owner at the same
location, or to the same owner or a different owner at a different
location in the same municipal corporation or in the
unincorporated area of the same township, as long as the same or
new location meets the economic development project criteria set
forth in this section.
(ii) Factors that shall may be used to determine the
designation of an economic development project include, but are
not limited to, architectural certification of the plans and the
cost of the project, the number of jobs that will be created by
the project, projected earnings of the project, projected tax
revenues for the political subdivisions in which the project will
be located, and the amount of financial investment in the project.
The superintendent of liquor control shall determine whether the
existing or proposed business that is seeking a permit described
in division (B)(2)(b) of this section qualifies as an economic
development project and, if the superintendent determines that it
so qualifies, shall designate the business as an economic
development project.
(3) Nothing in this section shall be construed to restrict
the issuance of a permit to a municipal corporation for use at a
municipally owned airport at which commercial airline companies
operate regularly scheduled flights on which space is available to
the public. A municipal corporation applying for a permit for such
a municipally owned airport is exempt, in regard to that
application, from the all of the following:
(a) The population quota restrictions contained in this
section and from;
(b) The population quota restrictions contained in any rule
of the liquor control commission. A municipal corporation applying
for a D-1, D-2, D-3, D-4, or D-5 permit for such a municipally
owned airport is subject to section;
(c) Section 4303.31 of the Revised Code.
(4) Nothing in this section shall be construed to prohibit
the issuance of a D permit to the board of trustees of a soldiers'
memorial for a premises located at a soldiers' memorial
established pursuant to Chapter 345. of the Revised Code. An
application for a D permit by the board for those premises is
exempt from the population restrictions contained in this section
and from the population quota restrictions contained in any rule
of the liquor control commission. The location of a D permit
issued to the board for those premises shall not be transferred. A
board of trustees of a soldiers' memorial applying for a D-1, D-2,
D-3, D-4, or D-5 permit for the soldiers' memorial is subject to
section 4303.31 of the Revised Code.
(5) Nothing in this section shall be construed to restrict
the issuance of a permit for a premises located at a golf course
owned by a municipal corporation, township, or county, owned by a
park district created under Chapter 1545. of the Revised Code, or
owned by the state. The location of such a permit issued on or
after September 26, 1984, for a premises located at such a golf
course shall not be transferred. Any application for such a permit
is exempt from the all of the following:
(a) The population quota restrictions contained in this
section and from the;
(b) The population quota restrictions contained in any rule
of the liquor control commission. A municipal corporation,
township, county, park district, or state agency applying for a
D-1, D-2, D-3, D-4, or D-5 permit for such a golf course is
subject to section;
(c) Section 4303.31 of the Revised Code.
(6) As used in division (B)(6) of this section, "fair" has
the same meaning as in section 991.01 of the Revised Code; "state
fairgrounds" means the property that is held by the state for the
purpose of conducting fairs, expositions, and exhibits and that is
maintained and managed by the Ohio expositions commission under
section 991.03 of the Revised Code; "capitol square" has the same
meaning as in section 105.41 of the Revised Code; and "Ohio
judicial center" means the site of the Ohio supreme court and its
grounds.
Nothing in this section shall be construed to restrict the
issuance of one or more D permits to one or more applicants for
all or a part of the state fairgrounds, capitol square, or the
Ohio judicial center. An application for a D permit for the state
fairgrounds, capitol square, or the Ohio judicial center is exempt
from the population quota restrictions contained in this section
and from the population quota restrictions contained in any rule
of the liquor control commission. The location of a D permit
issued for the state fairgrounds, capitol square, or the Ohio
judicial center shall not be transferred. An applicant for a D-1,
D-2, D-3, or D-5 permit for the state fairgrounds is not subject
to section 4303.31 of the Revised Code.
Pursuant to section 1711.09 of the Revised Code, the holder
of a D permit issued for the state fairgrounds shall not deal in
spirituous liquor at the state fairgrounds during, or for one week
before or for three days after, any fair held at the state
fairgrounds.
(7) Nothing in this section shall be construed to prohibit
the issuance of a D permit for a premises located at a zoological
park at which sales have been approved in an election held under
former section 4301.356 of the Revised Code. An application for a
D permit for such a premises is exempt from the population
restrictions contained in this section, from the population quota
restrictions contained in any rule of the liquor control
commission, and from section 4303.31 of the Revised Code. The
location of a D permit issued for a premises at such a zoological
park shall not be transferred, and no quota or other restrictions
shall be placed on the number of D permits that may be issued for
a premises at such a zoological park.
(C)(1) No D-3, D-4, D-5, or D-5a permit shall be issued in
any election precinct in any municipal corporation or in any
election precinct in the unincorporated area of any township, in
which at the November, 1933, election a majority of the electors
voting thereon in the municipal corporation or in the
unincorporated area of the township voted against the repeal of
Section 9 of Article XV, Ohio Constitution, unless the sale of
spirituous liquor by the glass is authorized by a majority vote of
the electors voting on the question in the precinct at an election
held pursuant to this section or by a majority vote of the
electors of the precinct voting on question (C) at a special local
option election held in the precinct pursuant to section 4301.35
of the Revised Code. Upon the request of an elector, the board of
elections of the county that encompasses the precinct shall
furnish the elector with a copy of the instructions prepared by
the secretary of state under division (P) of section 3501.05 of
the Revised Code and, within fifteen days after the request, a
certificate of the number of signatures required for a valid
petition under this section.
Upon the petition of thirty-five per cent of the total number
of voters voting in any such precinct for the office of governor
at the preceding general election, filed with the board of
elections of the county in which such precinct is located not
later than ninety days before a general election, the board shall
prepare ballots and hold an election at such general election upon
the question of allowing spirituous liquor to be sold by the glass
in such precinct. The ballots shall be approved in form by the
secretary of state. The results of the election shall be certified
by the board to the secretary of state, who shall certify the
results to the division.
(2) No holder of a class D-3 permit issued for a boat or
vessel shall sell spirituous liquor in any precinct, in which the
election provided for in this section may be held, unless the sale
of spirituous liquor by the drink has been authorized by vote of
the electors as provided in this section or in section 4301.35 of
the Revised Code.
(D) Any holder of a C or D permit whose permit premises were
purchased in 1986 or 1987 by the state or any state agency for
highway purposes shall be issued the same permit at another
location notwithstanding any quota restrictions contained in this
chapter or in any rule of the liquor control commission.
Sec. 4303.33. (A) Every A-1 or A-1c permit holder in this
state, every bottler, importer, wholesale dealer, broker,
producer, or manufacturer of beer outside this state and within
the United States, and every B-1 permit holder and importer
importing beer from any manufacturer, bottler, person, or group of
persons however organized outside the United States for sale or
distribution for sale in this state, on or before the eighteenth
day of each month, shall make and file with the tax commissioner
upon a form prescribed by the tax commissioner an advance tax
payment in an amount estimated to equal the taxpayer's tax
liability for the month in which the advance tax payment is made.
If the advance tax payment credits claimed on the report are for
advance tax payments received by the tax commissioner on or before
the eighteenth day of the month covered by the report, the
taxpayer is entitled to an additional credit of three per cent of
the advance tax payment and a discount of three per cent shall be
allowed the taxpayer at the time of filing the report if filed as
provided in division (B) of this section on any amount by which
the tax liability reflected in the report exceeds the advance tax
payment estimate by not more than ten per cent. The additional
three per cent credit and three per cent discount shall be in
consideration for advancing the payment of the tax and other
services performed by the permit holder and other taxpayers in the
collection of the tax.
"Advance tax payment credit" means credit for payments made
by an A-1, A-1c, or B-1 permit holder and any other persons during
the period covered by a report which was made in anticipation of
the tax liability required to be reported on that report.
"Tax liability" as used in division (A) of this section means
the total gross tax liability of an A-1, A-1c, or B-1 permit
holder and any other persons for the period covered by a report
before any allowance for credits and discount.
(B) Every A-1 or A-1c permit holder in this state, every
bottler, importer, wholesale dealer, broker, producer, or
manufacturer of beer outside this state and within the United
States, every B-1 permit holder importing beer from any
manufacturer, bottler, person, or group of persons however
organized outside the United States, and every S permit holder, on
or before the tenth day of each month, shall make and file a
report for the preceding month upon a form prescribed by the tax
commissioner which report shall show the amount of beer produced,
sold, and distributed for sale in this state by the A-1 or A-1c
permit holder, sold and distributed for sale in this state by each
manufacturer, bottler, importer, wholesale dealer, or broker
outside this state and within the United States, the amount of
beer imported into this state from outside the United States and
sold and distributed for sale in this state by the B-1 permit
holder or importer, and the amount of beer sold in this state by
the S permit holder.
The report shall be filed by mailing it to the tax
commissioner, together with payment of the tax levied by sections
4301.42 and 4305.01 of the Revised Code shown to be due on the
report after deduction of advance payment credits and any
additional credits or discounts provided for under this section.
(C)(1) Every A-2, A-4, B-2, B-2a, B-3, B-4, B-5, and S permit
holder in this state, on or before the eighteenth day of each
month, shall make and file a report with the tax commissioner upon
a form prescribed by the tax commissioner which report shall show,
on the report of each A-2, A-4, B-2a, and S permit holder the
amount of wine, cider, and mixed beverages produced and sold, or
sold in this state by each such A-2, A-4, B-2a, and S permit
holder for the next preceding calendar month and such other
information as the tax commissioner requires, and on the report of
each such B-2, B-3, B-4, and B-5 permit holder the amount of wine,
cider, and mixed beverages purchased from an importer, broker,
wholesale dealer, producer, or manufacturer located outside this
state and sold and distributed in this state by such B-2, B-3,
B-4, and B-5 permit holder, for the next preceding calendar month
and such other information as the tax commissioner requires.
(2) Every such A-2, A-4, B-2, B-2a, B-3, B-4, B-5, and S
permit holder in this state shall remit with the report the tax
levied by sections 4301.43 and, if applicable, 4301.432 of the
Revised Code less a discount thereon of three per cent of the
total tax so levied and paid, provided the return is filed
together with remittance of the amount of tax shown to be due
thereon, within the time prescribed. Any permit holder or other
persons who fail to file a report under this section, for each day
the person so fails, may be required to forfeit and pay into the
state treasury the sum of one dollar as revenue arising from the
tax imposed by sections 4301.42, 4301.43, 4301.432, and 4305.01 of
the Revised Code, and that sum may be collected by assessment in
the manner provided in section 4305.13 of the Revised Code.
(3) If the tax commissioner determines that the quantity
reported by a person does not warrant monthly reporting, the
commissioner may authorize the filing of returns and the payment
of the tax required by this section for periods longer than one
month.
(D) Every B-1 permit holder and importer in this state
importing beer from any manufacturer, bottler, person, or group of
persons however organized, outside the United States, if required
by the tax commissioner shall post a bond payable to the state in
such form and amount as the commissioner prescribes with surety to
the satisfaction of the tax commissioner, conditioned upon the
payment to the tax commissioner of taxes levied by sections
4301.42 and 4305.01 of the Revised Code.
(E) No such wine, beer, cider, or mixed beverages sold or
distributed in this state shall be taxed more than once under
sections 4301.42, 4301.43, and 4305.01 of the Revised Code.
(F) As used in this section:
(1) "Cider" has the same meaning as in section 4301.01 of the
Revised Code.
(2) "Wine" has the same meaning as in section 4301.01 of the
Revised Code, except that "wine" does not include cider.
(G) All money collected by the tax commissioner under this
section shall be paid to the treasurer of state as revenue arising
from the taxes levied by sections 4301.42, 4301.43, 4301.432, and
4305.01 of the Revised Code.
Sec. 4303.332. An A-1 A-1c permit holder in this state whose
total production of beer, wherever produced, does not exceed
thirty-one million gallons in a calendar year, as reported under
section 4303.33 of the Revised Code, shall receive a credit
against taxes levied in the following calendar year under sections
4301.42 and 4305.01 of the Revised Code on not more than nine
million three hundred thousand gallons of beer sold or distributed
in this state. The credit may be claimed monthly against taxes
levied under one or more of those sections as the reports required
by section 4303.33 of the Revised Code are due. At the time the
report for December is due for a calendar year during which a
permit holder is eligible to receive a credit under this section,
if the permit holder has claimed less than the credit due on nine
million three hundred thousand gallons, including credit claimed
on the December report, the permit holder may claim a refund of
taxes previously reported and paid under section 4303.33 of the
Revised Code during the calendar year on a number of gallons equal
to the difference between nine million three hundred thousand
gallons and the number of gallons for which a credit has been
claimed under this section. For the purpose of providing this
refund, taxes previously paid under section 4303.33 of the Revised
Code during the calendar year shall not be considered final until
the December report is filed. The tax commissioner shall prescribe
forms for and allow the credits and refunds authorized by this
section.
Section 2. That existing sections 1333.84, 4301.24, 4301.47,
4303.02, 4303.021, 4303.06, 4303.20, 4303.29, 4303.33, and
4303.332 of the Revised Code are hereby repealed.
Section 3. On the effective date of this act, a person who
holds an A-1 liquor permit that has been issued under section
4303.02 of the Revised Code and who is eligible to obtain an A-1c
liquor permit issued under section 4303.022 of the Revised Code,
as enacted by this act, shall continue to operate under the terms
of the A-1 permit until that permit is required to be renewed. At
the time of renewal, the permit holder shall obtain an A-1c liquor
permit under section 4303.022 of the Revised Code, as enacted by
this act. On and after the effective date of this act, a person
who holds an A-1 liquor permit shall not sell beer products in
bottles or containers to retail permit holders. However, if the
A-1 liquor permit holder would qualify for an A-1c liquor permit
under section 4303.022 of the Revised Code, as enacted by this
act, the A-1 liquor permit holder may sell to such retail permit
holders.
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