Article 5.--GALLONAGE TAX; COLLECTION AND DISPOSITION
41-501.Tax rate; exemptions; limitation on tax bycity; collection and disposition of tax; permit to import for certainpurposes.(a) As used in this section and K.S.A. 41-501a, and amendments thereto:
(1) "Gallon" means wine gallon.
(2) "Federal area" means any lands orpremises which are located within the exterior boundaries of this stateand which are held or acquired by or for the use of the United States orany department, establishment or agency of the United States.
(3) "Malt product" means malt syrup, malt extract, liquid malt or wort.
(b) (1) For the purpose of raising revenue a tax is imposed uponthe manufacturing, using, selling, storing or purchasing alcoholic liquor,cereal malt beverage or malt products in this state ora federal area at a rate of $.18 per gallon on beer and cereal maltbeverage; $.20 per gallon on all wort or liquid malt; $.10 per pound on allmalt syrup or malt extract; $.30 per gallon on winecontaining 14% or less alcohol by volume;$.75 per gallon on wine containing more than14% alcohol by volume; and $2.50 per gallon on alcohol and spirits.
(2) The tax imposed by this section shall be paid only onceand shall be paid by theperson in this state or federal area who first manufactures, uses,sells, stores, purchases or receives the alcoholic liquor orcereal malt beverage. The tax shallbe collected and paid to the director as provided in this act. If thealcoholic liquor or cereal malt beverage is manufactured and sold in thisstate or a federalarea, the tax shall be paid by the manufacturer, microbrewery or farm wineryproducing it. If the alcoholicliquor or cereal malt beverage is imported into this state by a distributorfor the purpose ofsale at wholesale in this state or a federal area, the tax shall bepaid by the distributor, and in noevent shall such tax be paid by the manufacturer unless the alcoholicliquor or cereal malt beverage is manufactured in this state.If not to exceed one gallon, or metricequivalent, per person of alcoholic liquor has been purchased by aprivate citizen outside the borders of the United States and is broughtinto this state by the private citizen in such person's personal possessionfor such person's own personal use and not for sale or resale, such importis lawful and no tax payment shall be due thereon.
(c) Manufacturers, microbreweries, farm wineries or distributors atwholesale ofalcoholic liquor or cereal malt beverage shall be exempt fromthe payment of the gallonage taximposed on alcoholic liquor and cereal malt beverage, uponsatisfactory proof, including bills oflading furnished to the director by affidavit or otherwise as the directorrequires, that the liquor or cereal malt beverage wasmanufactured in this state but was shippedout of the state for sale and consumption outside the state.
(d) Wines manufactured or imported solely and exclusively forsacramental purposes and uses shall not be subject to the tax provided forby this section.
(e) The tax provided for by this section is not imposed upon:
(1) Any alcohol or wine, whether manufactured in or imported into thisstate,when sold to a nonbeverage user licensed by the state, for use in themanufacture ofany of the following when they are unfit for beverage purposes: Patentand proprietary medicines and medicinal, antiseptic and toiletpreparations; flavoring extracts and syrups and food products;scientific, industrial and chemical products; or scientific,chemical, experimental or mechanical purposes; or
(2) the privilege of engaging in any business of interstate commerce orotherwise, which business may not be made the subject of taxation by this stateunder the constitution and statutes of the United States.
(f) The tax imposed by this section shall be in addition to allother taxes imposed by the state of Kansas or by any municipalcorporation or political subdivision thereof.
(g) Retail sales of alcoholic liquor,sales of beer toconsumers by microbreweries and sales of wine toconsumers by farm wineriesshall not besubject to the tax imposed by theKansas retailers' sales tax act but shall be subject to the enforcement taxprovided for in this act.
(h) Notwithstanding any ordinance to the contrary, no city shall imposean occupation or privilege tax on the business of any person, firm orcorporation licensed as a manufacturer, distributor, microbrewery, farmwinery, retaileror nonbeverage user under this act and doing business within the boundariesof the city except as specifically authorized by K.S.A. 41-310, andamendmentsthereto.
(i) The director shall collect thetaxes imposed by this section and shall account for andremit all moneys collected from thetaxto the state treasurer in accordance with the provisionsof K.S.A. 75-4215, and amendments thereto.Upon receipt of each such remittance, the state treasurer shall deposit theentire amount in the state treasury and the state treasurer shall credit1/10 of the moneys collected from taxesimposed upon alcohol and spirits under subsection (b)(1) to the communityalcoholism and intoxication programs fund created by K.S.A.41-1126, and amendments thereto, and shall credit the balance ofthe moneyscollected to the state general fund.
(j) If any alcoholic liquor manufactured in or imported into thisstate is sold to a licensed manufacturer or distributor of this state tobe used solely as an ingredient in the manufacture of any beverage forhuman consumption, the tax imposed upon the manufacturer or distributorshall be reduced by the amount of the taxes which have been paid under thissection as to the alcoholic liquor so used.
(k) The tax provided for by this section is not imposed upon alcoholor wine used by any school or college for scientific, chemical,experimental or mechanical purposes or by hospitals, sanitoria or otherinstitutions caring for the sick. Any school, college, hospital,sanatorium or other institution caring for the sick may import alcoholor wine for scientific, chemical, experimental, mechanical or medicinalpurposes by making application to the director for a permit to import itand receiving such a permit. Application for the permit shallbe on a form prescribed and furnished by the director, and a separatepermit shall be required for each purchase of alcohol or wine. A fee of$2 shall accompany each application. All permits shall beissued in triplicate to the applicant and shall be under the seal ofthe office of the director. Two copies of the permit shall beforwarded by the applicant to the microbrewery, farm winery,manufacturer or distributorfrom which the alcohol or wine is purchased, and the microbrewery, farm winery,manufacturer or distributorshall return to the office of the director one copy of the permitwith its shipping affidavit and invoice. Within 10 days afterreceipt of any alcohol or wine, the school, college, hospital orsanatorium ordering it shall file a report in the office of thedirector upon forms furnished by the director, showing theamount of alcohol or wine received, the place where it is to be stored,from whom it was received, the purpose for which it is to be used and suchother information as required by the director. Any school,college, hospital, sanatorium or institution caring for the sick, whichcomplies with the provisions of this subsection, shall not be requiredto have any other license to purchase alcohol or wine from amicrobrewery, farm winery,manufacturer or distributor.
History: L. 1949, ch. 242, § 53; L. 1953, ch. 238, § 6;L. 1958, ch. 50, § 2 (Budget Session); L. 1958, ch. 14, § 1(Special Session);L. 1961, ch. 240, § 1; L. 1964, ch. 34, § 1 (Budget Session); L.1971,ch. 174, § 1; L. 1977, ch. 167, § 1; L. 1977, ch. 168, §1; L. 1983, ch.161, § 12; L. 1984, ch. 179, § 1; L. 1985, ch. 172, § 1;L. 1986, ch. 185, § 5;L. 1987, ch. 182, § 41;L. 1993, ch. 234, § 3;L. 2001, ch. 5, § 129; July 1.
Article 5.--GALLONAGE TAX; COLLECTION AND DISPOSITION
41-501.Tax rate; exemptions; limitation on tax bycity; collection and disposition of tax; permit to import for certainpurposes.(a) As used in this section and K.S.A. 41-501a, and amendments thereto:
(1) "Gallon" means wine gallon.
(2) "Federal area" means any lands orpremises which are located within the exterior boundaries of this stateand which are held or acquired by or for the use of the United States orany department, establishment or agency of the United States.
(3) "Malt product" means malt syrup, malt extract, liquid malt or wort.
(b) (1) For the purpose of raising revenue a tax is imposed uponthe manufacturing, using, selling, storing or purchasing alcoholic liquor,cereal malt beverage or malt products in this state ora federal area at a rate of $.18 per gallon on beer and cereal maltbeverage; $.20 per gallon on all wort or liquid malt; $.10 per pound on allmalt syrup or malt extract; $.30 per gallon on winecontaining 14% or less alcohol by volume;$.75 per gallon on wine containing more than14% alcohol by volume; and $2.50 per gallon on alcohol and spirits.
(2) The tax imposed by this section shall be paid only onceand shall be paid by theperson in this state or federal area who first manufactures, uses,sells, stores, purchases or receives the alcoholic liquor orcereal malt beverage. The tax shallbe collected and paid to the director as provided in this act. If thealcoholic liquor or cereal malt beverage is manufactured and sold in thisstate or a federalarea, the tax shall be paid by the manufacturer, microbrewery or farm wineryproducing it. If the alcoholicliquor or cereal malt beverage is imported into this state by a distributorfor the purpose ofsale at wholesale in this state or a federal area, the tax shall bepaid by the distributor, and in noevent shall such tax be paid by the manufacturer unless the alcoholicliquor or cereal malt beverage is manufactured in this state.If not to exceed one gallon, or metricequivalent, per person of alcoholic liquor has been purchased by aprivate citizen outside the borders of the United States and is broughtinto this state by the private citizen in such person's personal possessionfor such person's own personal use and not for sale or resale, such importis lawful and no tax payment shall be due thereon.
(c) Manufacturers, microbreweries, farm wineries or distributors atwholesale ofalcoholic liquor or cereal malt beverage shall be exempt fromthe payment of the gallonage taximposed on alcoholic liquor and cereal malt beverage, uponsatisfactory proof, including bills oflading furnished to the director by affidavit or otherwise as the directorrequires, that the liquor or cereal malt beverage wasmanufactured in this state but was shippedout of the state for sale and consumption outside the state.
(d) Wines manufactured or imported solely and exclusively forsacramental purposes and uses shall not be subject to the tax provided forby this section.
(e) The tax provided for by this section is not imposed upon:
(1) Any alcohol or wine, whether manufactured in or imported into thisstate,when sold to a nonbeverage user licensed by the state, for use in themanufacture ofany of the following when they are unfit for beverage purposes: Patentand proprietary medicines and medicinal, antiseptic and toiletpreparations; flavoring extracts and syrups and food products;scientific, industrial and chemical products; or scientific,chemical, experimental or mechanical purposes; or
(2) the privilege of engaging in any business of interstate commerce orotherwise, which business may not be made the subject of taxation by this stateunder the constitution and statutes of the United States.
(f) The tax imposed by this section shall be in addition to allother taxes imposed by the state of Kansas or by any municipalcorporation or political subdivision thereof.
(g) Retail sales of alcoholic liquor,sales of beer toconsumers by microbreweries and sales of wine toconsumers by farm wineriesshall not besubject to the tax imposed by theKansas retailers' sales tax act but shall be subject to the enforcement taxprovided for in this act.
(h) Notwithstanding any ordinance to the contrary, no city shall imposean occupation or privilege tax on the business of any person, firm orcorporation licensed as a manufacturer, distributor, microbrewery, farmwinery, retaileror nonbeverage user under this act and doing business within the boundariesof the city except as specifically authorized by K.S.A. 41-310, andamendmentsthereto.
(i) The director shall collect thetaxes imposed by this section and shall account for andremit all moneys collected from thetaxto the state treasurer in accordance with the provisionsof K.S.A. 75-4215, and amendments thereto.Upon receipt of each such remittance, the state treasurer shall deposit theentire amount in the state treasury and the state treasurer shall credit1/10 of the moneys collected from taxesimposed upon alcohol and spirits under subsection (b)(1) to the communityalcoholism and intoxication programs fund created by K.S.A.41-1126, and amendments thereto, and shall credit the balance ofthe moneyscollected to the state general fund.
(j) If any alcoholic liquor manufactured in or imported into thisstate is sold to a licensed manufacturer or distributor of this state tobe used solely as an ingredient in the manufacture of any beverage forhuman consumption, the tax imposed upon the manufacturer or distributorshall be reduced by the amount of the taxes which have been paid under thissection as to the alcoholic liquor so used.
(k) The tax provided for by this section is not imposed upon alcoholor wine used by any school or college for scientific, chemical,experimental or mechanical purposes or by hospitals, sanitoria or otherinstitutions caring for the sick. Any school, college, hospital,sanatorium or other institution caring for the sick may import alcoholor wine for scientific, chemical, experimental, mechanical or medicinalpurposes by making application to the director for a permit to import itand receiving such a permit. Application for the permit shallbe on a form prescribed and furnished by the director, and a separatepermit shall be required for each purchase of alcohol or wine. A fee of$2 shall accompany each application. All permits shall beissued in triplicate to the applicant and shall be under the seal ofthe office of the director. Two copies of the permit shall beforwarded by the applicant to the microbrewery, farm winery,manufacturer or distributorfrom which the alcohol or wine is purchased, and the microbrewery, farm winery,manufacturer or distributorshall return to the office of the director one copy of the permitwith its shipping affidavit and invoice. Within 10 days afterreceipt of any alcohol or wine, the school, college, hospital orsanatorium ordering it shall file a report in the office of thedirector upon forms furnished by the director, showing theamount of alcohol or wine received, the place where it is to be stored,from whom it was received, the purpose for which it is to be used and suchother information as required by the director. Any school,college, hospital, sanatorium or institution caring for the sick, whichcomplies with the provisions of this subsection, shall not be requiredto have any other license to purchase alcohol or wine from amicrobrewery, farm winery,manufacturer or distributor.
History: L. 1949, ch. 242, § 53; L. 1953, ch. 238, § 6;L. 1958, ch. 50, § 2 (Budget Session); L. 1958, ch. 14, § 1(Special Session);L. 1961, ch. 240, § 1; L. 1964, ch. 34, § 1 (Budget Session); L.1971,ch. 174, § 1; L. 1977, ch. 167, § 1; L. 1977, ch. 168, §1; L. 1983, ch.161, § 12; L. 1984, ch. 179, § 1; L. 1985, ch. 172, § 1;L. 1986, ch. 185, § 5;L. 1987, ch. 182, § 41;L. 1993, ch. 234, § 3;L. 2001, ch. 5, § 129; July 1.
Article 5.--GALLONAGE TAX; COLLECTION AND DISPOSITION
41-501.Tax rate; exemptions; limitation on tax bycity; collection and disposition of tax; permit to import for certainpurposes.(a) As used in this section and K.S.A. 41-501a, and amendments thereto:
(1) "Gallon" means wine gallon.
(2) "Federal area" means any lands orpremises which are located within the exterior boundaries of this stateand which are held or acquired by or for the use of the United States orany department, establishment or agency of the United States.
(3) "Malt product" means malt syrup, malt extract, liquid malt or wort.
(b) (1) For the purpose of raising revenue a tax is imposed uponthe manufacturing, using, selling, storing or purchasing alcoholic liquor,cereal malt beverage or malt products in this state ora federal area at a rate of $.18 per gallon on beer and cereal maltbeverage; $.20 per gallon on all wort or liquid malt; $.10 per pound on allmalt syrup or malt extract; $.30 per gallon on winecontaining 14% or less alcohol by volume;$.75 per gallon on wine containing more than14% alcohol by volume; and $2.50 per gallon on alcohol and spirits.
(2) The tax imposed by this section shall be paid only onceand shall be paid by theperson in this state or federal area who first manufactures, uses,sells, stores, purchases or receives the alcoholic liquor orcereal malt beverage. The tax shallbe collected and paid to the director as provided in this act. If thealcoholic liquor or cereal malt beverage is manufactured and sold in thisstate or a federalarea, the tax shall be paid by the manufacturer, microbrewery or farm wineryproducing it. If the alcoholicliquor or cereal malt beverage is imported into this state by a distributorfor the purpose ofsale at wholesale in this state or a federal area, the tax shall bepaid by the distributor, and in noevent shall such tax be paid by the manufacturer unless the alcoholicliquor or cereal malt beverage is manufactured in this state.If not to exceed one gallon, or metricequivalent, per person of alcoholic liquor has been purchased by aprivate citizen outside the borders of the United States and is broughtinto this state by the private citizen in such person's personal possessionfor such person's own personal use and not for sale or resale, such importis lawful and no tax payment shall be due thereon.
(c) Manufacturers, microbreweries, farm wineries or distributors atwholesale ofalcoholic liquor or cereal malt beverage shall be exempt fromthe payment of the gallonage taximposed on alcoholic liquor and cereal malt beverage, uponsatisfactory proof, including bills oflading furnished to the director by affidavit or otherwise as the directorrequires, that the liquor or cereal malt beverage wasmanufactured in this state but was shippedout of the state for sale and consumption outside the state.
(d) Wines manufactured or imported solely and exclusively forsacramental purposes and uses shall not be subject to the tax provided forby this section.
(e) The tax provided for by this section is not imposed upon:
(1) Any alcohol or wine, whether manufactured in or imported into thisstate,when sold to a nonbeverage user licensed by the state, for use in themanufacture ofany of the following when they are unfit for beverage purposes: Patentand proprietary medicines and medicinal, antiseptic and toiletpreparations; flavoring extracts and syrups and food products;scientific, industrial and chemical products; or scientific,chemical, experimental or mechanical purposes; or
(2) the privilege of engaging in any business of interstate commerce orotherwise, which business may not be made the subject of taxation by this stateunder the constitution and statutes of the United States.
(f) The tax imposed by this section shall be in addition to allother taxes imposed by the state of Kansas or by any municipalcorporation or political subdivision thereof.
(g) Retail sales of alcoholic liquor,sales of beer toconsumers by microbreweries and sales of wine toconsumers by farm wineriesshall not besubject to the tax imposed by theKansas retailers' sales tax act but shall be subject to the enforcement taxprovided for in this act.
(h) Notwithstanding any ordinance to the contrary, no city shall imposean occupation or privilege tax on the business of any person, firm orcorporation licensed as a manufacturer, distributor, microbrewery, farmwinery, retaileror nonbeverage user under this act and doing business within the boundariesof the city except as specifically authorized by K.S.A. 41-310, andamendmentsthereto.
(i) The director shall collect thetaxes imposed by this section and shall account for andremit all moneys collected from thetaxto the state treasurer in accordance with the provisionsof K.S.A. 75-4215, and amendments thereto.Upon receipt of each such remittance, the state treasurer shall deposit theentire amount in the state treasury and the state treasurer shall credit1/10 of the moneys collected from taxesimposed upon alcohol and spirits under subsection (b)(1) to the communityalcoholism and intoxication programs fund created by K.S.A.41-1126, and amendments thereto, and shall credit the balance ofthe moneyscollected to the state general fund.
(j) If any alcoholic liquor manufactured in or imported into thisstate is sold to a licensed manufacturer or distributor of this state tobe used solely as an ingredient in the manufacture of any beverage forhuman consumption, the tax imposed upon the manufacturer or distributorshall be reduced by the amount of the taxes which have been paid under thissection as to the alcoholic liquor so used.
(k) The tax provided for by this section is not imposed upon alcoholor wine used by any school or college for scientific, chemical,experimental or mechanical purposes or by hospitals, sanitoria or otherinstitutions caring for the sick. Any school, college, hospital,sanatorium or other institution caring for the sick may import alcoholor wine for scientific, chemical, experimental, mechanical or medicinalpurposes by making application to the director for a permit to import itand receiving such a permit. Application for the permit shallbe on a form prescribed and furnished by the director, and a separatepermit shall be required for each purchase of alcohol or wine. A fee of$2 shall accompany each application. All permits shall beissued in triplicate to the applicant and shall be under the seal ofthe office of the director. Two copies of the permit shall beforwarded by the applicant to the microbrewery, farm winery,manufacturer or distributorfrom which the alcohol or wine is purchased, and the microbrewery, farm winery,manufacturer or distributorshall return to the office of the director one copy of the permitwith its shipping affidavit and invoice. Within 10 days afterreceipt of any alcohol or wine, the school, college, hospital orsanatorium ordering it shall file a report in the office of thedirector upon forms furnished by the director, showing theamount of alcohol or wine received, the place where it is to be stored,from whom it was received, the purpose for which it is to be used and suchother information as required by the director. Any school,college, hospital, sanatorium or institution caring for the sick, whichcomplies with the provisions of this subsection, shall not be requiredto have any other license to purchase alcohol or wine from amicrobrewery, farm winery,manufacturer or distributor.
History: L. 1949, ch. 242, § 53; L. 1953, ch. 238, § 6;L. 1958, ch. 50, § 2 (Budget Session); L. 1958, ch. 14, § 1(Special Session);L. 1961, ch. 240, § 1; L. 1964, ch. 34, § 1 (Budget Session); L.1971,ch. 174, § 1; L. 1977, ch. 167, § 1; L. 1977, ch. 168, §1; L. 1983, ch.161, § 12; L. 1984, ch. 179, § 1; L. 1985, ch. 172, § 1;L. 1986, ch. 185, § 5;L. 1987, ch. 182, § 41;L. 1993, ch. 234, § 3;L. 2001, ch. 5, § 129; July 1.
