§ 3-7-116 - Tax rebate for qualified manufacturers.

3-7-116. Tax rebate for qualified manufacturers.

(a) For purposes of this section:

(1) "Barrel" means thirty-one gallons (31 gals.) of liquid;

(2) "Beer" means any fermented liquor made from malt or any substitute and having an alcoholic content of not more than five percent (5%) by weight;

(3) "Malt beverage" means any liquor brewed from the fermented juices of grain and having an alcoholic content of not less than five percent (5%) or more than twenty-one percent (21%) by weight;

(4) (A) (i) "Qualified manufacturer" means a person that manufactures a combined total of less than twenty-five thousand (25,000) barrels of beer and malt beverage during the twelve-month period immediately preceding the twelve-month period for which the rebate under this section is claimed.

(ii) "Qualified manufacturer" includes a person licensed under 3-5-1201 et seq. or 3-5-1401 et seq.

(B) (i) The maximum quantity of less than twenty-five thousand (25,000) barrels of beer and malt beverage shall be computed by combining all brands and labels of beer and malt beverage manufactured at all manufacturing facilities owned or controlled by the qualified manufacturer.

(ii) (a) The person shall validate its eligibility by furnishing copies of the following forms:

(1) Brewers Report of Operations (monthly or quarterly) TTB Form (OMB Number 1512-0052); or

(2) Its equivalent form as submitted to the United States Department of Treasury.

(b) The forms shall demonstrate that the combined manufactured barrels of beer and malt beverage are less than twenty-five thousand (25,000) barrels of beer; and

(5) "Wholesaler" means a person licensed by the Alcoholic Beverage Control Division as a wholesaler that purchases beer or malt beverage from a qualified manufacturer.

(b) (1) (A) A qualified manufacturer is entitled to a tax rebate equal to seven dollars and fifty cents ($7.50) per barrel of beer or malt beverage sold or offered for sale in Arkansas each calendar year by the qualified manufacturer or sold through its appointed wholesalers, if the qualified manufacturer or its wholesaler is required to report and pay tax under 3-7-104(6) or 3-5-1408(3) or 3-7-104 on the beer or malt beverage first sold or offered for sale in this state.

(B) The tax rebate claimed each year by the qualified manufacturer under this section shall not exceed the annual tax liability of the qualified manufacturer and its wholesalers under 3-5-1408(3) or 3-7- 104 during the year requested.

(2) The first twelve-month period for which a qualified manufacturer may claim a rebate under this section begins January 1, 2007, for the year ending December 31, 2006.