2007 Oregon Code - Chapter 473 :: Chapter 473 - Wine - Cider and Malt Beverage Privilege Tax
Chapter 473 —
Wine, Cider and Malt Beverage Privilege Tax
2007 EDITION
WINE, CIDER & MALT BEVERAGE PRIVILEGE TAX
LIQUOR; DRUGS
473.005Â Â Â Â Definitions
for chapter
473.015Â Â Â Â Definition
of “cider”
473.020Â Â Â Â Administration
of chapter by commission
473.030Â Â Â Â Tax
on wines and malt beverages
473.035Â Â Â Â Tax
on cider
473.045Â Â Â Â Tax
on sale or use of agricultural products used by wineries; penalty for
nonpayment
473.047Â Â Â Â Marketing
activity tax credit; rules
473.050Â Â Â Â When
privilege tax not imposed
473.060Â Â Â Â Payment
of taxes; refunds; interest or penalty; appeal
473.065Â Â Â Â Deposit
in lieu of bond; requirements; refund of excess amounts; waiver of bond
473.070Â Â Â Â Statements
by manufacturers as to quantities produced; circumstances when annual reporting
allowed
473.080Â Â Â Â Estimate
by commission when statement not filed or false statement filed
473.090Â Â Â Â Lien
created by the tax
473.100Â Â Â Â Seizure
of property; notice of sale
473.110Â Â Â Â
473.120Â Â Â Â Collection
of sums due state; remedies cumulative
473.130Â Â Â Â Estimate
by commission as prima facie evidence
473.140Â Â Â Â Records
to be kept by manufacturers and purchasers
473.150Â Â Â Â Inspection
of manufacturerÂ’s records; records to be kept for prescribed period
473.160Â Â Â Â Records
to be kept by persons transporting wine, cider or malt beverage
473.170Â Â Â Â Failure
to pay tax or to maintain records
473.180Â Â Â Â Applicability
to interstate and foreign commerce
473.190Â Â Â Â State
has exclusive right to tax liquor
473.990Â Â Â Â Penalties
473.992Â Â Â Â Penalty
upon failure to pay agricultural products tax
     473.005
Definitions for chapter. The
definitions provided by ORS 471.001 apply to this chapter. [1995 c.301 §6]
     473.010 [Amended by 1953 c.120 §6; 1974 c.4 §8;
repealed by 1995 c.301 §33]
     473.015
Definition of “cider.” For
the purposes of this chapter, “cider” means an alcoholic beverage made from the
fermentation of the juice of apples or pears that contains not less than
one-half of one percent and not more than seven percent of alcohol by volume,
including, but not limited to, flavored, sparkling or carbonated cider. [1995
c.301 §10; 1997 c.348 §1; 1999 c.351 §78]
     473.020
Administration of chapter by commission. The Oregon Liquor Control Commission shall administer this chapter,
and shall prescribe forms and make such rules and regulations as it deems
necessary to enforce its provisions.
     473.030
Tax on wines and malt beverages. (1) A tax is imposed upon the privilege of engaging in business as a
manufacturer or as an importing distributor of malt beverages at the rate of
$2.60 per barrel of 31 gallons on all such beverages.
     (2) A tax is imposed upon the privilege of
engaging in business as a manufacturer or as an importing distributor of wines
at the rate of 65 cents per gallon on all such beverages.
     (3) In addition to the tax imposed by subsection
(2) of this section, a manufacturer or an importing distributor of wines
containing more than 14 percent alcohol by volume shall be taxed at the rate of
10 cents per gallon.
     (4) In addition to the taxes imposed by
subsections (2) and (3) of this section, a manufacturer or an importing
distributor of wines shall be taxed at the rate of two cents per gallon.
Notwithstanding any other provision of law, all moneys collected by the Oregon
Liquor Control Commission pursuant to this subsection shall be paid into the
account established by the Oregon Wine Board under ORS 182.470.
     (5) The rates of tax imposed by this
section upon malt beverages apply proportionately to quantities in containers
of less capacity than those quantities specified in this section.
     (6) The taxes imposed by this section
shall be measured by the volume of wine or malt beverages produced, purchased
or received by any manufacturer. If the wine or malt beverage remains unsold
and in the possession of the producer at the plant where it was produced, no
tax imposed or levied by this section is required to be paid until the wine or
malt beverage has become sufficiently aged for marketing at retail, but this
subsection shall not be construed so as to alter or affect any provision of
this chapter relating to tax liens or the filing of statements. [Amended by
1974 c.4 §9; 1975 c.424 §3; 1977 c.856 §19; 1983 c.651 §9; 1987 c.608 §3; 1995
c.301 §23; 1997 c.249 §176; 1999 c.351 §79; 2003 c.797 §22]
     473.035
Tax on cider. (1) A tax is
imposed upon the privilege of engaging in business as a manufacturer or as an
importing distributor of cider at the rate of $2.60 per barrel of 31 gallons on
all such beverages.
     (2) Notwithstanding subsection (1) of this
section or any other provision of law, the taxation of the manufacturing or
distribution of cider shall be at a rate that is not less than the rate imposed
for the privilege of manufacturing or distributing malt beverages under ORS
473.030 (1).
     (3) The rate of tax imposed by this
section shall apply proportionately to quantities in containers of less
capacity than those quantities specified in this section.
     (4) The tax imposed by this section shall
be measured by the volume of cider produced, purchased or received by any
manufacturer. If the cider remains unsold and in the possession of the producer
at the plant where it was produced, no tax imposed or levied by this section is
required to be paid until the cider has become sufficiently aged for marketing
at retail, but this subsection shall not be construed so as to alter or affect
any provision of this chapter relating to tax liens or the filing of
statements. [1997 c.348 §3]
     473.040 [Amended by 1997 c.348 §4; repealed by 2007
c.854 §10]
     473.045
Tax on sale or use of agricultural products used by wineries; penalty for
nonpayment. (1) A tax is
hereby imposed upon the sale or use of all agricultural products used in a
winery for making wine.
     (2) The amount of the tax shall be $25 per
ton of grapes of the vinifera varieties, whether true or hybrid.
     (3) An equivalent tax is imposed upon the
sale or use of vinifera or hybrid grape products imported for use in a winery
licensed under ORS chapter 471 for making wine. Such tax shall be $25 per ton
of grapes used to produce the imported grape product. The tax shall be
determined on the basis of one ton of grapes for each 150 gallons of wine made
from such vinifera or hybrid grape products.
     (4) A tax on the sale or use of products
that are not subject to subsection (2) or (3) of this section that are used to
make wine in this state shall be imposed at a rate of $.021 per gallon of wine
made from those products.
     (5) In the case of vinifera or hybrid
grape products harvested in this state, $12.50 of such tax shall be levied and
assessed against the person selling or providing such grape products to the
winery. If the purchasing winery is licensed under ORS chapter 471, that winery
shall deduct the tax levied under this subsection from the price paid to the
seller. If the purchasing winery is not licensed under ORS chapter 471, the
seller shall report all sales on forms provided by the Oregon Liquor Control
Commission and pay $12.50 per ton as a tax directly to the commission.
     (6) Taxes paid by sellers under subsection
(5) of this section shall be collected by the Oregon Liquor Control Commission
on behalf of the Oregon Wine Board. The commission may retain an amount
sufficient to cover the cost of collecting the taxes paid under subsection (5)
of this section and shall transfer the remainder of those taxes to the board
for deposit as provided in ORS 576.775. Failure to pay a tax imposed under
subsection (5) of this section subjects the violator to the penalty provided in
ORS 473.992.
     (7) Except for the tax specified in
subsection (4) of this section the taxes specified under this section shall be
levied and assessed to the licensed winery at the time of purchase of the
product by the winery or of importation of the product, whichever is later. The
tax specified in subsection (4) of this section shall be levied and assessed to
the licensed winery at the time the wine is made.
     (8) The taxes imposed by this section
shall be paid by the licensed winery and collected by the commission subject to
the same powers as taxes imposed and collected under ORS chapter 473. The tax
obligation for a calendar year shall be paid in two installments. Half shall be
due on December 31 of the current calendar year. The remaining half shall be
due the following June 30. [1977 c.690 §5; 1983 c.651 §6; 1987 c.804 §1; 1991
c.459 §415c; 1995 c.301 §47; 2003 c.604 §101; 2003 c.797 §23]
     Note: 473.045 was enacted into law by the
Legislative Assembly but was not added to or made a part of ORS chapter 473 or
any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
     473.047
Marketing activity tax credit; rules. (1) As used in this section, “qualified marketing activity” means
marketing activity:
     (a) That promotes the sale of wine or wine
products;
     (b) That does not promote specific brands
of wine or wine products or exclusively promote the products of any particular
winery; and
     (c) That has been approved by the Oregon
Wine Board.
     (2) A credit against the privilege tax
otherwise due under ORS 473.030 (2) is allowed to a manufacturer or importing
distributor of wine for the qualified marketing activity expenditures made by
the manufacturer or importing distributor in the calendar year prior to the
year for which the credit is claimed.
     (3) The credit allowed under this section
shall be 28 percent of the sum of the following:
     (a) One hundred percent of the cost of
qualified marketing activity to the extent that the cost of the activity does
not exceed the amount of taxes the manufacturer or importing distributor of
wine owed under ORS 473.030 (2) on the first 40,000 gallons, or 151,000 liters,
of wine sold annually in Oregon; and
     (b) Twenty-five percent of the tax owed
under ORS 473.030 (2) for qualified marketing activity on wine sales above
40,000 gallons, or 151,000 liters, of wine sold annually in Oregon.
     (4) The credit allowed under this section
may not exceed the tax liability of the manufacturer or importing distributor
of wine under ORS 473.030 (2) for the calendar year following the year in which
qualified marketing activity occurred.
     (5) A manufacturer or importing
distributor of wine that wishes to claim the credit allowed under this section
shall submit with the manufacturerÂ’s or importing distributorÂ’s tax return form
a certificate issued by the board verifying that the marketing activity was a
qualified marketing activity. The credit shall be claimed on the form and
include the information required by the Oregon Liquor Control Commission by
rule.
     (6) The credit shall be claimed against
the taxes reported on the return filed under ORS 473.060 for each month in the
calendar year following the year in which the qualified marketing activity
occurred, until the credit is completely used or the year ends, whichever
occurs first.
     (7) The board shall by rule further
define, consistent with the definition in subsection (1) of this section, the
marketing activities that constitute qualified marketing activity. [2001 c.971 §2;
2003 c.797 §24]
     473.050
When privilege tax not imposed.
In computing any privilege tax imposed by ORS 473.030 or 473.035:
     (1) No malt beverage, cider or wine is
subject to tax more than once.
     (2) No tax shall be levied, collected or
imposed upon any malt beverage, cider or wine sold to the Oregon Liquor Control
Commission or exported from the state.
     (3) No tax shall be levied, collected or
imposed upon any malt beverage given away and consumed on the licensed premises
of a brewery licensee, or sold to or by a voluntary nonincorporated
organization of army, air corps or navy personnel operating a place for the
sale of goods pursuant to regulations promulgated by the proper authority of
each such service.
     (4) No tax shall be levied, collected or
imposed upon any malt beverage, cider or wine determined by the commission to
be unfit for human consumption or unsalable.
     (5) No tax shall be levied, collected or
imposed upon the first 40,000 gallons, or 151,000 liters, of wine sold annually
in
     473.057 [1989 c.511 §4; 2003 c.44 §4; repealed by
2007 c.854 §10]
     473.060
Payment of taxes; refunds; interest or penalty; appeal. (1) The privilege taxes imposed by ORS
473.030 and 473.035 shall be paid to the Oregon Liquor Control Commission. The
taxes covering the periods for which statements are required to be rendered by
ORS 473.070 shall be paid before the time for filing such statements expires or,
as concerns wines, on or before the 20th day of the month after such wines have
been withdrawn from federal bond. If not so paid, a penalty of 10 percent and
interest at the rate of one percent a month or fraction of a month shall be
added and collected. The commission may refund any tax payment imposed upon or
paid in error by any licensee, and may waive the collection or refund the
payment of any tax imposed and collected on wine, cider or malt beverages
subsequently exported from this state, sold to a federal instrumentality or to
the commission, or determined by the commission to be unfit for human
consumption or unsalable.
     (2) The commission may waive any interest
or penalty assessed to a manufacturer subject to the tax imposed under ORS
473.030 or 473.035 if the commission, in its discretion, determines that the
manufacturer has made a good faith attempt to comply with the requirements of
this chapter.
     (3) Except in the case of fraud, the
commission may not assess any interest or penalty on any tax due under ORS
473.030 or 473.035 following the expiration of 36 months from the date on which
was filed the statement required under ORS 473.070 reporting the quantity of
wine, cider or malt beverages upon which the tax is due.
     (4) A manufacturer may appeal a tax
imposed under ORS 473.030 or 473.035 in the manner of a contested case under
ORS chapter 183. [Amended by 1955 c.241 §1; 1971 c.158 §2; 1981 c.199 §5; 1995
c.301 §25; 1997 c.348 §6; 1999 c.145 §1; 2007 c.854 §6]
     473.065
Deposit in lieu of bond; requirements; refund of excess amounts; waiver of
bond. (1) If a manufacturerÂ’s
total tax liability under ORS 473.030 (1) in the previous calendar year was
less than $1,000, the manufacturer may deposit with the Oregon Liquor Control
Commission an amount in cash equal to the manufacturerÂ’s total tax liability
under ORS 473.030 (1) for the previous calendar year in lieu of the bond
required by ORS 471.155 (1).
     (2) If a manufacturer’s actual tax
liability under ORS 473.030 (1) is less than the amount deposited under
subsection (1) of this section, the manufacturer may request that the
commission refund the excess funds or may apply those funds toward the
manufacturerÂ’s tax liability under ORS 473.030 (1) for the next calendar year.
     (3) If a manufacturer’s actual tax
liability under ORS 473.030 (1) is greater than the amount deposited under
subsection (1) of this section, the manufacturer shall pay to the commission
the additional amount owed in the manner required under ORS 473.060.
     (4) Unless the commission determines that
a winery licensee presents an unusual risk for nonpayment of any license fees,
privilege taxes, agricultural products taxes or other tax, penalty or interest
imposed under this chapter or ORS chapter 471, the commission shall waive the
bond required under ORS 471.155 (1) for the winery licensee if:
     (a) The licensee was not liable for a
privilege tax under this chapter in the immediately preceding calendar year and
does not expect to be liable for a privilege tax under this chapter in the current
calendar year; or
     (b) The winery was established during the
current calendar year and the licensee does not expect to be liable for a
privilege tax under this chapter in the current calendar year. [2005 c.632 §2;
2007 c.637 §2]
     473.070
Statements by manufacturers as to quantities produced; circumstances when
annual reporting allowed.
(1) On or before the 20th day of each month, every manufacturer shall file with
the Oregon Liquor Control Commission a statement of the quantity of wine, cider
and malt beverages produced, purchased or received by the manufacturer during
the preceding calendar month.
     (2) Notwithstanding subsection (1) of this
section, a manufacturer of wine that was not liable for a privilege tax under
this chapter in the prior calendar year and that does not expect to be liable
for a privilege tax under this chapter in the current calendar year, or a
manufacturer of wine that is newly established during the current calendar year
and that does not expect to be liable for a privilege tax under this chapter in
the current calendar year, may file a single annual statement of the quantity
of wine produced, purchased or received by the manufacturer during the current
calendar year. The annual statement shall be filed with the commission on or before
January 20 of the following year. [Amended by 1967 c.52 §1; 1981 c.199 §6; 1995
c.301 §26; 1997 c.348 §7; 2005 c.177 §1]
     473.080
Estimate by commission when statement not filed or false statement filed. If any manufacturer fails, neglects or refuses
to file a statement required by ORS 473.070 or files a false statement, the
Oregon Liquor Control Commission shall estimate the amount of wine, cider and
malt beverages produced, purchased or received by the manufacturer and assess
the privilege tax thereon. The manufacturer shall be estopped from complaining
of the amount so estimated. [Amended by 1967 c.52 §2; 1995 c.301 §27; 1997
c.348 §8]
     473.090
Lien created by the tax. The
privilege tax required to be paid by ORS 473.030 and 473.035 constitutes a lien
upon, and has the effect of an execution duly levied against, any and all
property of the manufacturer, attaching at the time the beverages subject to
the tax were produced, purchased or received, as the case may be, and remaining
until the tax is paid or the property sold in payment thereof. The lien created
by this section is paramount to all private liens or encumbrances. [Amended by
1997 c.348 §9; 2007 c.854 §7]
     473.100
Seizure of property; notice of sale. (1) Whenever any manufacturer is delinquent in the payment of the
privilege tax provided for in ORS 473.030 and 473.035, the Oregon Liquor
Control Commission or its duly authorized representative shall seize any
property subject to the tax and sell, at public auction, property so seized, or
a sufficient portion thereof to pay the privilege tax due, together with any
penalties imposed under ORS 473.060 for such delinquency and all costs incurred
on account of the seizure and sale.
     (2) Written notice of the intended sale
and the time and place thereof, shall be given to such delinquent manufacturer
and to all persons appearing of record to have an interest in the property, at
least 10 days before the date set for the sale. The notice shall be enclosed in
an envelope addressed to the manufacturer at the last-known residence or place
of business of the manufacturer in this state, if any; and in the case of any
person appearing of record to have an interest in such property, addressed to
such person at the last-known place of residence of the person, if any. The
envelope shall be deposited in the
     473.110
     473.120
Collection of sums due state; remedies cumulative. (1) The Oregon Liquor Control Commission
shall immediately transmit notice of the delinquency mentioned in ORS 473.100
to the Attorney General. The Attorney General shall at once proceed to collect
all sums due to the state from the manufacturer under this chapter by bringing
suit against the necessary parties to effect forfeiture of the bonds of the
manufacturer, reducing any deficiency to judgment against the manufacturer.
     (2) The remedies of the state provided in
ORS 473.090 to 473.120 are cumulative and no action taken by the commission or
Attorney General constitutes an election on the part of the state or any of its
officers to pursue one remedy to the exclusion of any other remedy provided in
this chapter.
     473.130
Estimate by commission as prima facie evidence. In any suit brought to enforce the rights of
the state, the assessment made by the Oregon Liquor Control Commission under
ORS 473.080, or a copy of so much thereof as is applicable in such suit, duly
certified by the commission and showing unpaid privilege taxes assessed against
any manufacturer, is prima facie evidence:
     (1) Of the assessment of the privilege tax
and the delinquency thereof.
     (2) Of the amount of the privilege tax,
interest, penalties and costs due and unpaid to the state.
     (3) That the manufacturer is indebted to
this state in the amount of such privilege tax, interest and penalties therein
appearing unpaid.
     (4) That the law relating to assessment
and levy of such privilege tax has been fully complied with by all persons
required to perform administrative duties under this chapter.
     473.140
Records to be kept by manufacturers and purchasers. Every manufacturer shall keep a complete and
accurate record of all sales of wine, cider and malt beverages, a complete and
accurate record of the number of gallons imported, produced, purchased,
manufactured, brewed or fermented, and the date of importation, production,
purchase, manufacturing, brewing or fermentation. The records shall be in such
form and contain such other information as the Oregon Liquor Control Commission
may prescribe. The commission, by rule or regulation, may require the delivery
of statements by distributors to purchasers, with wine, cider and malt
beverages, and prescribe the matters to be contained therein. Such records and
statements shall be preserved by the distributor and the purchaser
respectively, for a period of two years, and shall be offered for inspection at
any time upon oral or written demand by the commission or its duly authorized
agents. [Amended by 1995 c.301 §28; 1997 c.348 §11]
     473.150
Inspection of manufacturerÂ’s records; records to be kept for prescribed period. (1) The Oregon Liquor Control Commission
may, at any time, examine the books and records of a holder of a wine
self-distribution permit or of any manufacturer of wine, cider or malt beverages,
and may appoint auditors, investigators and other employees that the commission
considers necessary to enforce its powers and perform its duties under this
section.
     (2) Every holder of a wine
self-distribution permit and every manufacturer shall maintain and keep for two
years all records, books and accounts required by this chapter and shall
provide copies of those records, books and accounts to the commission when
requested by the commission. [Amended by 1995 c.301 §29; 1997 c.348 §14; 2007
c.651 §4]
     473.160
Records to be kept by persons transporting wine, cider or malt beverage. Every person transporting wine, cider or
malt beverages within this state, whether such transportation originates within
or without this state, shall keep a true and accurate record of wine, cider or
malt beverages transported. The record shall include ingredients which may be
used in the manufacture, production, brewing or fermentation of the wine, cider
or malt beverages, showing such facts with relation to those beverages, their
ingredients and their transportation, as the Oregon Liquor Control Commission
may require. The records shall be open to inspection by the representative of
the commission at any time. The commission may require from any such person
sworn returns of all or any part of the information shown by the records. [Amended
by 1995 c.301 §30; 1997 c.348 §12]
     473.170
Failure to pay tax or to maintain records. (1) No manufacturer shall:
     (a) Fail to pay the privilege tax
prescribed in ORS 473.030 and 473.035 when it is due; or
     (b) Falsify the statement required by ORS
473.070.
     (2) No person shall:
     (a) Refuse to permit the Oregon Liquor
Control Commission or any of its representatives to make an inspection of the
books and records authorized by ORS 473.140 to 473.160;
     (b) Fail to keep books of account
prescribed by the commission or required by this chapter;
     (c) Fail to preserve the books for two
years for inspection of the commission; or
     (d) Alter, cancel or obliterate entries in
the books of account for the purpose of falsifying any record required by this
chapter to be made, maintained or preserved. [Amended by 1967 c.52 §3; 1997
c.348 §13; 2007 c.854 §9]
     473.180
Applicability to interstate and foreign commerce. None of the provisions of this chapter apply
to commerce with foreign nations or commerce with the several states, except in
so far as the same may be permitted under the Constitution and laws of the
     473.190
State has exclusive right to tax liquor. No county or city of this state shall impose any fee or tax, including
occupation taxes, privilege taxes and inspection fees, in connection with the
production, sale, mixing, serving, transporting, delivering or handling of malt
or other alcoholic liquors. [Amended by 1961 c.259 §4; 1967 c.577 §8]
     473.200 [Repealed by 1967 c.577 §10]
     473.210 [Amended by 1957 c.445 §2; 1965 c.141 §1;
repealed by 1967 c.577 §10]
     473.220 [Repealed by 1967 c.577 §10]
     473.990
Penalties. (1) Violation of
ORS 473.170 (1) is punishable upon conviction by a fine not exceeding $500 or
by imprisonment in the county jail not exceeding six months, or both.
     (2) Violation of ORS 473.170 (2) is
punishable upon conviction by a fine not exceeding $1,000 or by imprisonment in
the county jail not exceeding one year, or both.
     473.992
Penalty upon failure to pay agricultural products tax. Failure to pay a tax under ORS 473.045 (5)
is punishable, upon conviction, by a fine of not more than $500, or by
imprisonment in the county jail for not more than 90 days, or both. [2003 c.797
§9]
     Note: 473.992 was enacted into law by the
Legislative Assembly but was not added to or made a part of ORS chapter 473 or
any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
_______________
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