CONCERNING THE EXCISE TAX ON CERTAIN BEER AND SAKE; TO CREATE AN EXCISE TAX CREDIT FOR CERTAIN BEER AND SAKE PRODUCED USING ARKANSAS RICE; AND FOR OTHER PURPOSES.

Fiscal Impact Statement Bill: HB1491 Bill Subtitle: CONCERNING THE EXCISE TAX ON CERTAIN BEER AND SAKE; TO CREATE AN EXCISE TAX CREDIT FOR CERTAIN BEER AND SAKE PRODUCED USING ARKANSAS RICE; AND FOR OTHER PURPOSES. --------------------------------------------------------------------------------------------------------------------------------------- Sponsors: Reps. Wardlaw and J. Richardson Sen. Dismang Basic Change: HB1491 creates a tax credit for beer and sake produced with Arkansas rice. To qualify for the tax credit, the beer and sake shall: • Contain at least 20% Arkansas rice as percentage weight of the total grain bill of the beer and sake; and • Be subject to the excise tax levied in § 3-7-104(6)(A) (the "beer tax") which is levied at the rate of $7.50 per barrel of 32 gallons on all beer having an alcoholic content of 5% or less by weight and hard cider. The amount of credit available is to be calculated by multiplying the percentage weight of Arkansas rice in the total grain bill by the amount of excise tax due for the qualified beer or sake for the reporting period. The resulting amount can then be deducted from the excise tax due for the period. HB1491 also directs the A

Fiscal Impact Statement Bill: HB1491 Amendment Number: H1 Bill Subtitle: CONCERNING THE EXCISE TAX ON CERTAIN BEER AND SAKE; TO CREATE AN EXCISE TAX CREDIT FOR CERTAIN BEER AND SAKE PRODUCED USING ARKANSAS RICE; AND FOR OTHER PURPOSES. --------------------------------------------------------------------------------------------------------------------------------------- Sponsors: Reps. Wardlaw and J. Richardson Sen. Dismang Basic Change: House Amendment No. 1 --- HB1491-H1 makes the tax credit for beer and sake produced with Arkansas rice available for additional types of licensees. More specifically, the original bill provided the credit for qualified beer and sake against the excise tax levied by § 3-7-104(6)(A). Microbrewery-restaurant licensees and small brewery licensees are not subject to the tax levied in § 3-7-104(6)(A) but are separately taxed at the same rate in § 3-5-1205(3) (microbrewery-restaurant licenses) and § 3-5-1408(3) (small brewery licenses). HB1491-H1 makes the credit available to the subject excise taxes paid by the holder of a microbrewery-restaurant license or a small brewery license. Original Bill --- HB1491 creates a tax credit for beer and sake produced w