HB 512 Summary

• Removes the Department of Revenue from acting as a wholesale distributor of alcoholic beverages and creates a new wholesaler's permit system allowing private entities to distribute alcoholic beverages to retailers statewide.

• Requires wholesalers to file monthly sales reports with the department, maintain records of all transactions, charge uniform prices statewide (with volume discounts allowed), and store beverages for minimum 48 hours in-state before retail delivery.

• Imposes an annual $5,000 privilege tax on wholesaler's permit holders and an 18% tax on gross proceeds of wholesale sales, in addition to existing per-gallon excise taxes.

• Establishes payment terms for retailers purchasing from wholesalers (cash or credit with specific due dates) and prohibits delinquent retailers from purchasing until accounts are cleared.

• Takes effect January 1, 2023, with various transitional provisions allowing the department to dispose of existing inventory through June 30, 2023.