Brief ⁽¹⁾

SB 42 would provide a three-year statute of limitations for the liquor drink tax. The statute-of-limitation language, which would limit refund requests and assessments to three years, except in cases of fraud, is similar to that already in place for the sales tax. In the case of a false or fraudulent return with intent to evade the tax, assessments must be made within two years after the fraud is discovered.

Background

The liquor drink tax is imposed on 10 percent of the gross receipts from the sale of alcoholic liquor by clubs, caterers, drinking establishments, and temporary permit holders.

The bill was requested for introduction and supported by the Department of Revenue.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext.cgi