Alcohol & Tobacco Tax Annual Report

Alcohol & Tobacco

Tax

Annual Report

Fiscal Year 2014

To the General Assembly and the

Governor of Maryland:

I am pleased to present the annual report of the Alcohol and Tobacco Tax Bureau

of the Revenue Administration Division for Fiscal Year 201

4

as provided in Article 2B,

§14-203, of the Annotated Code of Maryland.

This report furnishes general information and data about the administration and

collection of tax revenue, licensure and regulation, and other-related items, including

consumption and local alcoholic beverage statistics.

If you need further information, please contact the Revenue Administration

Division at 410.260.7980, or me, in Annapolis, and we will be happy to help you.

Sincerely,

Table of Contents

I.

Introduction

... 1-1

0

II.

Revenues

State Gross Revenue: 1933-201

4

...

1

1

Gross Revenue Net of Refunds ...

1

2

Alcoholic Beverages Revenue ...

1

3

Tobacco Revenue ...

1

4

State Revenue: Licenses ...

1

5

State Revenue: Alcohol Permits ...

1

6

III.

Sales & Consumption

Per Capita Consumption: Alcoholic Beverages 1

7

Per Capita Tax Dollars & Consumption ...

18

Alcoholic Beverages and Cigarettes

Wholesale Alcoholic Beverage Sales and

Cigarette Sales ... 1

9

Maryland Winery Gallonage Sales ...

.

2

0

Maryland Brewery Gallonage Sales ...

2

1

IV.

Administrative & Enforcement

Summary of Activities ...

2

2

V.

Local Jurisdictions: Retail Licenses, Revenue, and Statistics

Bulk Transfer Permits ... 2

3

Area & Population Chart……… 2

4

State of Maryland: County Restrictions ...

..

2

5

Local Revenue: Liquor Boards & Dispensaries

2

6

Retail Licenses Issued: Summary ...

2

7

Retail Licenses Issued: Local Liquor Boards ...

28

Retail License Violations ...

29

Retail License Information: Locations ... 3

0

-3

2

Retail License Issuing Authorities ... 3

3

-3

4

Liquor Control Boards & Dispensary Locations

3

5

Introduction

The Revenue Administration Division of the Comptroller of Maryland is responsible for collecting the alcoholic beverages tax and tobacco tax, and the Field Enforcement Division is responsible for regulation and enforcement of the State’s alcoholic beverages and tobacco tax laws.

This annual report provides data and statistics related to both the tax collection function of the Revenue Administration Division and the regulatory function of the Field Enforcement Division. All information in this report, including but not limited to revenue, licensure, and other regulatory activities are for fiscal year 2014: July 1, 2013 through June 30, 2014

.

Taxes

The Maryland Alcohol Beverages Tax is imposed on each gallon at the following rates:

Distilled Spirits * $ 1.50

Wine $ 0.40

Beer ** & Hard Cider $ 0.09

(* If distilled spirits contains a percentage of alcohol greater than 100 proof, or 50% alcohol, an additional tax for each 1 proof over 100 proof is 1.5 cents for each gallon.

** Flavored Malt Beverages (FMBs) are taxed at the same rate as beer)

Local jurisdictions are prohibited from imposing an alcohol tax. After paying refunds and the administrative costs of the Comptroller, alcohol beverage taxes are distributed to the General Fund of the State.

The Maryland Tobacco Tax is imposed on cigarettes and other tobacco products. Local jurisdictions are prohibited from imposing a tobacco tax on cigarettes. In addition to the $ 2.00 tax on a 20-cigarette pack, there is an additional $ .10 cent tax for each cigarette in a package of more than 20 cigarettes, and a $ 0.10 cent tax for each cigarette in a package of free sample cigarettes. If the cigarette pack has 10 or fewer cigarettes, the tax is $ 1.00 for each pack.

The tax rate for OTP is a percentage of the wholesale price, which means the price for which a wholesaler buys other tobacco products, exclusive of any discount, trade allowance, rebate, or other reduction.

The tax rate for OTP is 15% of the wholesale price, which means the price for which a wholesaler buys other tobacco products, exclusive of any discount, trade allowance, rebate, or other reduction.

Tobacco tax revenues are used to pay for refunds, and the Comptroller’s administration costs with the balance distributed to the General Fund of the State.

Revenue

Total net receipts from alcoholic beverages and tobacco taxes, license and permit fees, and miscellaneous income for fiscal year 2014 was $ 434,890,962. Compared to fiscal year 2013, fiscal year 2014 tax revenues indicate the following changes: 1.9% increase in distilled spirits; a 0.5% decrease in wine; and a 3.6% decrease in beer with an overall decrease of 0.002 % in alcoholic beverages tax collections.

The net receipt from the sales of cigarette tax stamps in the amount of $ 368,390,044 reflects a 2.9% decrease from fiscal year 2013. The net receipt from Other Tobacco Products tobacco tax is $ 33,962,915, a decrease of 0.6% from fiscal year 2013. Other Tobacco Products include chewing tobacco, moist snuff, pipe tobacco, cigars, and roll-your-own tobacco.

Compared to alcoholic beverages tax revenues, tobacco taxes provided the largest percentage of net receipts at 84.7%. As a percentage of net tax revenue, distilled spirits accounted for 3.7%; wine: 1.4%; and beer: 2%. Other tobacco products tax accounted for 7.8% of the total tax revenues.

The Comptroller issues alcoholic beverages manufacturer and wholesaler licenses, and various permits. Local liquor boards issue alcoholic beverages retail licenses. Cigarette manufacturer and wholesaler licenses are issued by the Comptroller. As of May 1, 2011, OTP in-state manufacturer licenses and OTP licenses for both in-state and out-of-state wholesalers have been issued by the Comptroller repealing the OTP registration system. The Clerks of the Court issue cigarette retail licenses; and as of May 1, 2011, OTP retailer licenses and tobacconist licenses.

The tobacco license fees collected consist of cigarette manufacturer and wholesaler licenses issued by the Comptroller, and since May 1, 2011, license fees for other tobacco products manufacturer and wholesaler licenses.

Alcohol and tobacco license fees collected by the Comptroller are paid to the General Fund. Cigarette license fees are to be used to enforce the Maryland Cigarette Sales Below Cost Act.

Alcohol and Tobacco Legislation

The Maryland General Assembly passed several legislative bills during the

State of Maryland - Alcohol and Tobacco Tax Annual Report – 2014 Page 1

2013 session related to alcohol and tobacco laws. A summary of the legislation is available at

http://mgaleg.maryland.gov/, the Maryland General Assembly’s website.

2014 Legislative Session:

Alcoholic Beverages

STATEWIDE:

1. Senate Bill 546 – House Bill 208 –

Alcoholic Beverages –

Refillable

Containers

(1) The identical bills standardize the requirements for all refillable containers authorized by local jurisdictions for use in the sale of draft beer and wine for off-premises consumption.

(2) The bills rename a “refillable container license” as a “refillable container permit” to indicate that the authorization is secondary in nature and may be issued only to a person who already has an alcoholic beverages license.

(3) The bills include a requirement that a refillable container be branded with an identifying mark of the seller of the container.

(4) Baltimore, Carroll, Harford, Prince George’s, and St. Mary’s counties are added to the roster of counties which refillable container permits for beer may be issued.

EFFECTIVE OCTOBER 1, 2014.

2. Senate Bill 341 – House Bill 1079 –

Alcoholic Beverages –

Refillable

Containers

(1) These identical bills authorize the Board of License Commissioners in Calvert County to issue refillable container permits.

(2) A refillable container permit for wine may also be issued in Howard County.

(3) The bills authorize the Comptroller to adopt standards for refillable containers, including containers originating from outside the State.

EFFECTIVE JULY 1, 2014.

3. Senate Bill 226 – Alcoholic Beverages –

Brewing Company Off-site Permit

(1) This bill allows the Comptroller to issue a brewing company an off-site permit to a Class 7 micro-brewery that produces less than 3,000 barrels per year or a Class 8 farm brewery subject to specified requirements. (2) The permit may be used to sell to a

consumer up to 288 ounces of beer that has been produced by the permit holder for off-premises consumption.

(3) The permit may also be used to sell beer at certain farmers’ markets and other events.

EFFECTIVE JULY 1, 2014.

4. House Bill 464 – Alcoholic Beverages –

Retail Sale of Prepackaged Beer

(1) This bill authorizes the holder of a Class 7 micro-brewery license to sell at retail to customers for consumption off the licensed premises prepackaged, non-refillable containers of the micro-brewery’s own beer.

EFFECTIVE JULY 1, 2014.

5. House Bill 337 – Alcoholic Beverages –

Class 8 Obtaining a Class 7 License

(1) This bill authorizes the holder of a Class 8 farm brewery license to obtain a Class 7 limited beer wholesaler’s license.

(2) This bill also removes the prohibition on the issuance of a license for the sale of alcoholic beverages for any place of business located within specified districts in Frederick County if the business is a holder of a Class 8 farm brewery license.

EFFECTIVE JULY 1, 2014.

6. House Bill 356 – Alcoholic Beverages –

Farm Breweries

(1) This bill expands the eligibility for special festival licenses in Baltimore city as well as Baltimore, Carroll, Dorchester, Frederick, Garrett, St. Mary’s and Wicomico counties to include holders of a Class 8 farm brewery license.

(2) Moreover, the bill specifies that, in Garrett County, a holder of a Class 8

farm brewery

license may open on Sundays during

specified hours, in a precinct in an

State of Maryland - Alcohol and Tobacco Tax Annual Report – 2014 Page 2

election district where the voters have voted to allow for Sunday sales.

(3) A Class 8 farm brewery license is authorized to enter into a written temporary delivery agreement with a distributor for the delivery and return of beer to a beer festival or a wine and beer festival, provided the festival is located within a sales territory for which the holder does have a franchise with a distributor under the Beer Franchise Fair Dealing Act.

EFFECTIVE JULY 1, 2014.

7. House Bill 600 – Alcoholic Beverages –

Farmer’s Market Permit

(1) This bill reestablishes the Comptroller’s authority to issue a farmers’ market permit to a holder of a license other than a Class 4 limited winery license if the license was issued by the local licensing board of the jurisdiction in which the farmers’ market will be held.

EFFECTIVE JULY 1, 2014.

8. Senate Bill 75 – House Bill 359 –

Alcoholic Beverages – Maximum Alcohol

Content

(1) The identical bills prohibit the sale of an alcoholic beverage with alcohol content by volume of 95% (190 proof) or more.

EFFECTIVE JULY 1, 2014.

9. Senate Bill 161 – House Bill 261 –

Alcoholic Beverages – Hard Cider

Definition

(1) These identical bills codify current practice by expanding the definition of “hard cider” to include a beverage deprived primary from pears, or pear concentrate and water, containing at least one-half of 1% and less than 7% of alcohol by volume.

EFFECTIVE OCTOBER 1, 2014.

10. House Bill 4 – Alcoholic Beverages –

Prohibition of Vaportinis and Similar

Devices

(1) This bill expands the definition of an “alcohol without liquid (AWOL) machine” to include a Vaportini, or any similar device, that mixes an alcoholic product with pure oxygen or other gas to produce a vaporized product that can be inhaled.

(2) The bill expands an existing prohibition related to the use, possession, purchase, transfer or sale of AWOL machines to apply to Vaportinis.

EFFECTIVE JULY 1, 2014.

LOCAL:

1. Senate Bill 1015 – House Bill 591 –

Alcoholic Beverages – Anne Arundel

County – Tasting Licenses

(1) These identical bills create a Class BWLT beer, wine and liquor (on-premises) tasting license in Anne Arundel County. A Class BWLT license may only be issued to a holder of a Class A beer, wine and liquor (off-premises) license.

(2) The eligibility requirements for a Class BWT beer and wine (on premises) tasting license are limited so that the license may only be issued to a holder of a Class A beer, wine, and liquor (off-premises) license or a Class A beer and wine (off-premises) license. (3) The annual fee for a Class BWT license is

increased from $50 to $150 and a $500 fee for a Class BWLT license is established.

EFFECTIVE JULY 1, 2014.

2. Senate Bill 846 – House Bill 831 –

Alcoholic Beverages – Baltimore City –

Baltimore City Alcoholic Beverages Act

of 2014

(1) These bills provide for the appointment of three regular members and one alternate member to the Baltimore City Board of Liquor Commissioners by the Governor. (2) Each appointee must be a resident and voter

of Baltimore City, with high character and integrity and of recognized business capacity.

State of Maryland - Alcohol and Tobacco Tax Annual Report – 2014 Page 3

(3) The bills repeal the requirement that the executive secretary or the deputy executive secretary must be a member of the Maryland Bar.

(4) Furthermore, significant changes are made to provisions governing the issuance, transfer, and renewal of licenses including changes to the collection and allocation of board revenues.

EFFECTIVE UPON ENACTMENT.

3. Senate Bill 458 – House Bill 953 –

Alcoholic Beverages – Baltimore City –

Microbreweries

(1) These identical bills add Baltimore City to the list of locations in which a holder of a certain Class D alcoholic beverages license may be issued a Class 7 micro-brewery (on and off sale) license.

(2) The bill authorizes the license holder to brew at two locations using the same license if the Comptroller determines that the second location is necessary because of insufficient space at the existing location.

(3) Additionally, the bill prohibits the holder of the license from serving or selling beer at the second brewing location and authorizes the license holder to obtain a Class 2 rectifying license for the premises at the two locations.

EFFECTIVE JULY 1, 2014.

4. Senate Bill 793 – Alcoholic Beverages –

Baltimore City – Class B Licenses

(1) This bill authorizes the board to issue or allow the transfer of up to two Class B beer, wine, and liquor licenses into the area of 829 through 919 E. Fort Avenue within the 46th Legislative District only if the board has executed a memorandum of understanding between the community associations in Riverside and Locust Point regarding the nature of the proposed establishment and enforces the memorandum against any license holder seeking to renew or transfer the license.

(2) The cumulative number of licenses that may be issued or transferred is two.

(3)

The board may not allow such a license to be

transferred out of the area within the 46th

Legislative District into any other area of Ward 24, Precinct 5

.

EFFECTIVE JULY 1, 2014.

5. Senate Bill 1103 – Alcoholic Beverages –

Baltimore City – Class C licenses

(1)

Authorizes the board to issue a Class C

beer, wine, and liquor license in Ward 5,

Precinct 1 of the 44th Alcoholic

Beverages District.

EFFECTIVE JULY 1, 2014.

6. Senate Bill 546 – House Bill 208 –

Alcoholic Beverages – Baltimore County

– Refillable Containers

(1) These identical bills standardize the requirements for alcoholic beverages refillable containers used in the sale of draft beer, craft beer, or wine for off premises consumption.

(2) This bill authorizes the board to issue a refillable container permit to sell draft beer in refillable containers for consumption off the licensed premises to a holder of a Class A, Class B, or Class D license.

EFFECTIVE OCTOBER 1, 2014.

7. Senate Bill 496 – Alcoholic Beverages –

Calvert County - Organizational Licenses

(1) This bill authorizes the board to issue an organizational license to a fraternal organization, volunteer fire department, or volunteer rescue squad for use on the premises that the organization, fire department, or rescue squad owns or regularly uses to hold functions.

(2) A licensee may sell beer, wine, and liquor by the drink for consumption.

(3) The annual fee is $500.

EFFECTIVE JULY 1, 2014.

8. Senate Bill 495 – Alcoholic Beverages –

Calvert County – Premises Inspection

and Penalties

(1) This bill authorizes the board, or its designee to inspect each licensed premises in the

State of Maryland - Alcohol and Tobacco Tax Annual Report – 2014 Page 4

county every six months, rather than the previous rule of inspection every three months.

(2) The board may suspend an alcoholic beverages license for any alcoholic beverages violation and impose a fine of up to $1,000 for a violation of State law or $500 for a violation of the rules and regulations of the board.

EFFECTIVE JULY 1, 2014.

9. Senate Bill 548 – Alcoholic Beverages –

Calvert County – Special Event Permit

(1) This bill authorizes the board to issue a Special Event (festival) beer, wine, and liquor (on-sale) permit to a Class B or Class D license holder.

(2) The applicant must demonstrate a reasonable expectation of attracting at least 500 patrons to the special event and commit to provide additional security personnel at the event for traffic, parking, and patrol purposes as required.

(3) The permit fee is $500.

EFFECTIVE JULY 1, 2014.

10. Senate Bill 340 – Alcoholic Beverages –

Calvert County

–

Unlicensed

Establishments

(1) This bill prohibits an establishment that is not licensed by the board from giving, serving, dispensing, keeping, or allowing to be consumed on its premises, or on premises under its control or possession, any alcoholic beverages.

(2) However, a volunteer fire department, rescue squad, or emergency medical services organization may conduct no more than four events annually on their premises or premises under their control or possession to which individuals may bring and consume alcoholic beverages.

(3) A violator is guilty of a misdemeanor and subject to maximum penalties of two years imprisonment and/or a fine of $10,000.

EFFECTIVE JULY 1, 2014.

11. Senate Bill 341 – House Bill 1079 –

Alcoholic Beverages – Calvert County –

Refillable Containers

(1) Authorizes the board to issue a refillable container permit to a holder of a Class A, Class B, or Class D alcoholic beverages license.

(2) A refillable container permit entitles the holder to sell draft beer for consumption off the licensed premises in a refillable container with a capacity of not less than 32 ounces and not more than 128 ounces.

(3) A refillable container permit applicant must complete the form that the board provides and pay an annual permit fee of $50 if the applicant already has an off-sale privilege or $500 if the applicant does not have an off-sale privilege.

EFFECTIVE JULY 1, 2014.

12. Senate Bill 764 – Alcoholic Beverages –

Caroline County – Volunteer Fire

Companies

(1) Authorizes Caroline County volunteer fire companies to store alcoholic beverages on the licensed premises in between licensed events if the alcoholic beverages are in a specially identified locked and secured location and are not sold or consumed except during licensed event hours for licensed event purposes.

(2) A license holder who violates this provision is subject to a $100 fine for the first offense, and $500 for subsequent offenses and denial of future requests for a license.

EFFECTIVE JULY 1, 2014.

13. Senate Bill 560 – House Bill 156 –

Alcoholic Beverages – Carroll County –

License Fee Increases

(1) This bill authorizes phase in increases in license fees for alcoholic beverages in Carroll County.

(2) The fee increases are phased in from fiscal year 2015 through 2018.

EFFECTIVE JULY 1, 2014.

State of Maryland - Alcohol and Tobacco Tax Annual Report – 2014 Page 5

14. House Bill 300 – Alcoholic Beverages –

Charles County – Alcoholic Beverage

Licenses

(1) This bill increases the minimum distance restriction in Charles County so that a license to sell alcoholic beverages for consumption off premises may not be granted in any building which is within 1,000 feet, rather than 500 feet, of the property of any school.

(2) The existing 500-foot restriction remains with respect to a license to sell alcoholic beverages for consumption on premises.

EFFECTIVE UPON ENACTMENT.

15. House Bill 248 – Alcoholic Beverages –

Charles County – Beer, Wine, and Liquor

Licenses

(1) This bill increases various Class B alcoholic beverages licenses fees in Charles County by restructuring the county’s existing Class B alcoholic beverages licensing scheme and instituting extra fees for additional license privileges.

(2) The bill also renames a Class BLX license to a Class B-BLX (luxury restaurant) on-sale beer, wine and liquor license.

EFFECTIVE JULY 1, 2014.

16. House Bill 419 – Alcoholic Beverages –

Charles County – Population Quota in

Sixth Election District

(1) This bill specifies that the board may use the resident population figures of the last federal census when determining the number of off-sale alcoholic beverages licenses that may be issued within each election district.

(2) Additionally, the bill authorizes the board to issue in the 6th _{election district one alcoholic}

beverages license with an off-sale privilege per every unit of 2,700 people based on the resident population figures of the last federal census.

EFFECTIVE JULY 1, 2014.

17. Senate Bill 60 – House Bill 167 –

Alcoholic Beverages – Dorchester County

– Sunday Sales

(1) These identical bills authorize Class B (off-sale) beer and light wine licensees to sell beer and light wine on Sunday from 10 a.m. to midnight.

(2) Moreover, the bills expand the hours for sale of beer and light wine under a Class B (on-sale) beer and light wine license on Sunday from 10 a.m. to midnight.

(3)

If Christmas Eve or New Year’s Eve is on a

Sunday, beer and light wine may be sold both on and off premises from 10 a.m. to 2 a.m. the following day

.

EFFECTIVE JULY 1, 2014.

18. Senate Bill 619 – House Bill 433 –

Alcoholic Beverages – Frederick County

Alcoholic Beverages Act of 2014

(1) These bills authorize the Frederick County Board of License Commissioners to issue a license for the sale of beer, wine, and liquor for consumption on the premises only to an organization located in the county that is a bona fide religious, fraternal, civic, war veterans’, or patriotic organization.

(2) All net proceeds from the sale of alcoholic beverages must be used solely for charitable purposes or to further the purposes of the organization.

(3) The bills also allow all of the bottles in a wine preservation system that the board approves to be opened at a wine sampling or tasting event in the county.

(4) No more than six other bottles of wine may be opened by a holder of a solicitor’s permit, the holder of the beer and wine sampling or tasting license, or an employee of the license holder.

(5) A single individual may not consume more than six ounces of wine from all brands in a single day.

EFFECTIVE JULY 1, 2014.

19. Senate Bill 618 – House Bill 472 –

Alcoholic Beverages – Frederick County –

Country Inn Licenses

(1)

These identical bills authorize the board to

issue a Class B-CI (country inn) on-sale beer, wine, and liquor license for the use of an establishment that meets

specified

State of Maryland - Alcohol and Tobacco Tax Annual Report – 2014 Page 6

requirements in the Burkittsville (twenty-second) election district.

EFFECTIVE JULY 1, 2014.

20. House Bill 337 – Alcoholic Beverages –

Frederick County – Farm Breweries

(1) Is a statewide bill that authorizes a holder of a Class 8 farm brewery license to obtain a Class 7 limited beer wholesaler’s license. In Frederick County, the bill removes the prohibition on the issuance of a license for the sale of alcoholic beverages for any place of business located within the following election districts if the business is a holder of a Class 8 farm brewery license: Catoctin (6th), Hauvers (10th), Jackson (16th); Linganore (19th), and Ballenger (23rd).

EFFECTIVE JULY 1, 2014.

21. Senate Bill 420 – Alcoholic Beverages –

Garrett County – Beer Festival Licenses

(1) This bill alters beer festival licenses in Garrett County so that the holder of a beer festival license may display and sell at retail beer that was manufactured and processed in any state.

(2) This bill also adds a Class 8 farm brewery license holder to the list of applicants eligible for a beer festival license in Garrett County.

EFFECTIVE JULY 1, 2014.

22. House Bill 1097 – Alcoholic Beverages –

Garrett County – Qualified Voters for

Sunday Sales

(1) The Garrett County Board of License Commissioners must provide the Department of Legislative Services, by December 1, 2014, a complete list of election districts and precincts in Garrett County in which Sunday sales of alcoholic beverages are authorized.

(2)

Those districts and precincts must then be listed in a specified location in the Annotated Code of Maryland

.

EFFECTIVE JULY 1, 2014.

23. House Bill 836 – Alcoholic Beverages –

Class A2 Light Wine Licenses

(1) This bill repeals the ability of the board to issue Class A2 Light Wine licenses since it is no longer needed and its privileges are available under the State Class 4 Limited Winery License issued by the Comptroller.

EFFECTIVE JULY 1, 2014.

24. Senate Bill 552 – Alcoholic Beverages –

Harford County - Class H-CC Beer,

Wine, and Liquor License

(1) This bill eliminates the requirements that a Class H-CC (corporate club/conference center) license only be used by a private club of at least 25 members who pay an annual membership fee and may not be used for any purpose other than for the benefit of the club.

(2) A Class H-CC license may keep for sale and sell beer, wine, and liquor.

(3)

The holder of a Class H-CC license may hold no more than four, instead of one, self-sponsored events per year in the banquet, conference, or meeting room

.

EFFECTIVE JULY 1, 2014.

25. House Bill 1170 – Alcoholic Beverages –

Harford County

–

Residency

Requirements

(1) This bill specifies that an applicant for a Class B restaurant or Class D tavern license who is acting on behalf of a business entity, must be a resident of the State for at least one year before filing the application, must remain a resident as long as the license is in effect, and must reside within a 100-mile radius of the Town of Bel Air.

(2)

Furthermore, one of the applicants, regardless of the type of business entity, must be a responsible operator of the licensed establishment who has been a resident of the State for at least one year and remains a resident as long as thelicense is in effect and must reside within a 100 mile radius of the Town of Bel Air.

State of Maryland - Alcohol and Tobacco Tax Annual Report – 2014 Page 7

(3)

A responsible operator must own at least

25% of the total business, except for an applicant for a Class B license

.

EFFECTIVE JULY 1, 2014.

26. Senate Bill 1112 – Alcoholic Beverages –

Howard County – Population Restrictions

on Class A Licenses

(1) This bill limits the number of Class A alcoholic beverage licenses of any type that can be issued by the board to one license for every 4,000 Howard County residents, as determined by the latest federal census. (2) However, the limitation does not apply to a

license issued for use in an existing shopping center or a proposed shopping center development for which a building permit has been issued that contains 200,000 or more square feet of commercial retail space.

EFFECTIVE JULY 1, 2014.

27. House Bill 1091 – Alcoholic Beverages –

Howard County – Beer Festivals

(1) This bill authorizes the board to issue a special beer festival license to the holder of a current retail alcoholic beverages license issued in the State, a State Class 5 Brewery License, a State Class 7 micro-brewery license, or a State Class 8 farm brewery license.

(2) The holder of a special beer festival license may display and sell at retail beer for consumption on or off the licensed premises on festival days and hours.

(3) The license fee is $50 for a one- or two-day festival.

(4)

The board must approve one weekend at an

unlicensed premises in Howard County for the special beer festival

.

EFFECTIVE JULY 1, 2014.

28. Senate Bill 49 – House Bill 226 –

Alcoholic Beverages – Kent County –

Kent County Alcoholic Beverages Act

2014

(1) These identical bills authorize the Board of License Commissioners to issue a beer or

wine tasting (BWT) license to a holder of a Class A beer and wine license or a Class A beer, wine, and liquor license.

(2) Additionally, the inspector employed by the board may serve summonses and issue citations for specified alcohol related crimes in Kent County.

(3) The BWT license allows the licensee to serve, for tasting purposes only, samples of up to two ounces of wine from a given brand and four ounces from all brands and up to two ounces of beer from a given brand and six ounces from all brands to any one person in a single day for on-premises consumption. (4) The annual BWT license fee is $200.

EFFECTIVE JULY 1, 2014.

29. House Bill 137 – Alcoholic Beverages –

Montgomery County – Beauty Salon

License

(1) This bill authorizes the Board of License Commissioners to issue a special beauty salon beer and wine license to a holder of a beauty salon permit.

(2) The annual fee for the license is $100.

(3) The license authorizes the licensee to provide no more than five ounces of beer or wine by the glass for on-premises consumption by a beauty salon customer during specified cosmetology services and permitted fund raising events. (4) The license may not be transferred to another

location.

(5) Beer and wine may be provided during normal business hours but no later than 9 p.m. each night.

EFFECTIVE JULY 1, 2014.

30. Senate Bill 305 – House Bill 132 –

Alcoholic Beverages –

Montgomery

County – Beer Sales and Delivery to

Retail Dealers

(1) These bills authorize a holder of a Class 7 limited beer wholesaler’s license or a nonresident brewery permit to sell or deliver its own beer to a county liquor dispensary, a restaurant, or any other retail dealer in Montgomery County.

(2) These bills also authorize a county liquor dispensary, a restaurant, or any other retail dealer in Montgomery County to purchase beer directly from a holder of a Class 7

State of Maryland - Alcohol and Tobacco Tax Annual Report – 2014 Page 8

limited beer wholesaler’s license or of a nonresident brewery permit.

EFFECTIVE JULY 1, 2014.

31. Senate Bill 657 – House Bill 463 –

Alcoholic Beverages –

Montgomery

County – Beer, Wine, and Liquor

Licenses

(1) These bills allow the board to issue a Class D beer, wine, and liquor licenses for on-premises consumption. The annual fee is $3,000.

(2) The bills establish provisions relating to license requirements and inspections of licensed establishments.

(3) The bills also extend the time of day that holders of a Class B-BWL and B-BWL (H-M) licenses may sell alcoholic beverages. (4) To obtain a Class D beer, wine, and liquor

license, the owner must attest in a sworn statement that gross receipts from food sales in the establishment will be at least 40% of the total of all gross receipts.

EFFECTIVE JULY 1, 2014.

32. Senate Bill 459 – House Bill 269 –

Alcoholic Beverages –

Montgomery

County – Clubhouse/Lodge Licenses

(1) The board may issue a Class B-BWL (Clubhouse/Lodge) license to the Executive Director of the Montgomery County Revenue Authority, or the Executive Director’s designee, for use by a multi-use facility that accommodates a golf course, a restaurant, a clubhouse, a tasting bar, and the catering of events anywhere on the property.

(2) The holder of this license is not required to be located in any specified geographic location and is not required to maintain any alcohol sales to food sales ratio.

(3) The annual fee is $1,000.

EFFECTIVE JULY 1, 2014.

33. Senate Bill 311 – House Bill 146 –

Alcoholic Beverages –

Montgomery

County – Community Performing Arts

Facility Special BWL License

(1) Under the bills, a “community performing arts facility” is any facility used for shows, live performances, theater productions, art classes, exhibits, visual art shows, weddings, banquets, and community related activities. (2) These bills allow the board to issue a Special

BWL Community Performing Arts Facility alcoholic beverage license with an annual fee of $750.

(3) To qualify for the license, the performing arts facility must have a capacity of at least 200 but no more than 1,499 people.

(4) The licensee may sell alcoholic beverages by the drink for consumption on the premises during the hours of 10 a.m. to 2 a.m. the following day.

(5) Food must be served or provided during the hours in which alcoholic beverages are sold or consumed.

EFFECTIVE JULY 1, 2014.

34. Senate Bill 298 – House Bill 136 –

Alcoholic Beverages –

Montgomery

County – Beer Festivals

(1) These bills authorize the county to conduct the Montgomery County Beer Festival through a “festival organization” to be selected by the county.

(2) The festival is to be held no more than four weekends per year and is to be conducted under the supervision of the Montgomery County Department of Liquor Control.

(3)

The license fee is $30 per day

.

EFFECTIVE JULY 1, 2014.

35. Senate Bill 310 – Alcoholic Beverages –

Montgomery County – Microbrewery

Licenses, Class D Beer, and Light Wine

Licenses

(1) This bill authorizes the holder of a Class D beer and light wine license in Montgomery County to be issued a Class 7 micro-brewery license by the Comptroller.

EFFECTIVE JULY 1, 2014.

36. Senate Bill 300 – House Bill 142 –

Alcoholic Beverages –

Montgomery

State of Maryland - Alcohol and Tobacco Tax Annual Report – 2014 Page 9

County – Proportion of Food and

Alcoholic Beverage Sales

(1) These bills decrease, from 50 to 40%, the minimum ratio of food sales to food and alcoholic beverage sales combined that restaurants and hotels must maintain in order to obtain or renew a Class B beer, wine and liquor license in Montgomery County.

EFFECTIVE JULY 1, 2014.

37. Senate Bill 302 – House Bill 131 –

Alcoholic Beverages – City of Takoma

Park

(1) These bills repeal the June 30, 2014 termination date of Chapter 390 of 2012, which provided an off-sale privilege for Class B beer and light wine licenses issued for hotels and restaurants in the City of Takoma Park.

EFFECTIVE JULY 1, 2014.

38. House Bill 135 – Alcoholic Beverages –

Town of Kensington

(1) This bill authorizes the board to issue a special B-K alcoholic beverage license to a restaurant located at the East side of Connecticut Avenue between Warner Street and Knowles Avenue in the Town of Kensington.

(2) The holder of the license may not serve alcoholic beverages after 11 p.m.

EFFECTIVE JULY 1, 2014.

39. Senate Bill 250 – House Bill 287 –

Alcoholic Beverages – Somerset County –

Class 7 Micro-Brewery License

(1) These bills add Somerset County to the list of jurisdictions in which a Class 7 micro-brewery license may be issued.

(2) The license may be issued to a holder of a Class B beer, wine, and liquor (on-sale) license for use on the premises of a restaurant.

EFFECTIVE JULY 1, 2014.

40. Senate Bill 692 – House Bill 332 –

Alcoholic Beverages –

Washington

County – Restaurant Seating Capacity

(1) These bills reduce the seating capacity in the definition of a restaurant in Washington County from 75 to 50 persons for a Class P alcoholic beverages (on-sale) license.

(2)

These bills also exclude Class P licenses from

being factored in calculating Washington County’s “population ration quota” for alcoholic beverage licenses

.

EFFECTIVE JULY 1, 2014.

41. Senate Bill 1079 – Alcoholic Beverages –

Worcester County – Class D License

(1) This bill authorizes the board to issue a Class D beer, wine, and liquor license within the corporate limits of the towns of Berlin and Snow Hill.

EFFECTIVE JULY 1, 2014.

State of Maryland - Alcohol and Tobacco Tax Annual Report – 2014 Page 10

(a) Alcoholic Beverages License Fees $12,206,227

(b) Tax on Distilled Spirits 827,419,061

(c) Manufacturer’s Tax on Distilled Spirits 1,528,684

(d) Tax on Wine 190,638,995

(e) Tax on Beer 453,013,926

(f) Alcoholic Beverages Permit Fees 17,947,186

(g) Cigarette Tax 6,761,310,245

(h) Other Tobacco Products Tax 177,950,548

(i) Other Tobacco Products Licenses 63,425

Miscellaneous Revenue - Alcoholic Beverages

Miscellaneous Revenue - Tobacco Tax 69,222,779 1,515,861

Total $8,512,816,937

(a) License fees are collected from manufacturers, wholesalers, railroads, steamboats and airline companies.

(b) The distilled spirits and sparkling and fortified wine tax was created on December 5, 1933 at $1.10 per wine gallon not over 100 proof. The tax on distilled spirits increased to $1.25 per wine gallon on 100 proof or less on October 1, 1939, and increased to $1.50 per wine gallon on 100 proof or less on July 1, 1955.

(c) The manufacturer’s tax on distilled spirits began on April 1, 1936 at the rate of 5 cents per proof gallon. The rate decreased to 2 ½ cents per proof gallon on June 1, 1937, brandy and neutral spirits were exempt. This tax was repealed on September 30, 1939.

(d) Prior to April 1, 1935, the tax levied on sparkling and fortified wines was the same rate as distilled spirits at $1.10 per gallon. As of May 17, 1935, the tax on distilled spirits; however, all wines of whatever alcoholic content were taxed at a rate of $ 0.20 cents per gallon. The wine tax rate increased to 40 cents per gallon on July 1, 1972. (e) The beer alcoholic beverages tax was created on April 1,

1936 at the rate of 2.4375 cents per gallon. The rate increased to 3 cents per gallon on October 1, 1938, and further increased to 9 cents per gallon on July 1, 1972.

(f) Certain permit fees were established June 1, 1943 at an annual fee of $5.00 for each permit. As of June 1, 1959, permit fees of $50.00 established for: Public Storage, Public Transportation, Public Storage and Transportation, Nonresident Dealer, Import-Export, and Bulk Transfer. Permit fees of $25 established for: Individual Storage, Private Bulk Sales, and Non-Beverage (Commercial). Permit fees of $2.00 established for: Change of Domicile, Individual Transportation, and Vehicle Identification per vehicle. No permit fee for Non-Beverage eleemosynary or fuel-alcohol. Solicitor’s Permit created on June 1, 1973; the Wine Exhibition Permit on July 1, 1985 ($50.00 fee); and the Charity Wine Auction Permit on July 1, 1986 ($500.00 fee).

Non-Resident Storage Permits created on July 1987 ($500.00 fee). Alcohol Awareness Program Permit created on July 1, 1989 ($15.00 fee). Numerous license and permit fees increased effective May 1, 1992. Alcohol Awareness Instructor’s Permit created on October 1, 1994 ($5.00 fee); Family Beer and Wine Facility Permit on June 1, 1996 ($400.00 fee); Private Bulk Sales Permit on October 1, 1997 ($25.00 fee); Winery Special Event Permit on October 1, 2000 ($25.00 fee). Direct Wine Seller’s Permit has been repealed, and replaced on July 1, 2011 by Direct Wine Shipper Permit ($200 fee) and Common Carrier Permit ($100 fee). Fee per vehicle for Vehicle Identification card increased from $2.00 to $10.00 on June 1, 2003. Fee for a Charity Wine Auction permit reduced $500.00 to $10.00 on June 1, 2004. Non-resident winery permit created on April 25, 2006 ($50.00 fee). Brewery Special Event Permit created on June 1, 2008 ($25.00 fee). Resident Dealer Permit created on July 1, 2009 ($200 fee), and the fees for a Public Storage and Transportation Permit, Nonresident Dealer’s Permit, and a Bulk Transfer Permit increased to $200.

(g) Tobacco tax on cigarettes effective July 1, 1958, at rate of 3 cents per pack. Tax increased to 6 cents per pack on July 1, 1961; 10 cents per pack on June 1, 1975; 13 cents per pack on July 1, 1980; 16 cents per pack on June 1, 1991; 36 cents per pack on May 1, 1992; 66 cents per pack on July 1, 1999; $1.00 per pack on June 1, 2002; and $2.00 per pack on January 1, 2008. Prior to 1961, cigarette tax was imposed by certain counties and Baltimore City. (h) Tobacco tax on Other Tobacco Products became effective

on July 1, 2000 at a rate of 15% of the wholesale price. (i) Other Tobacco Products Licenses effective May 1, 2011.

Annual OTP fees: In-state manufacturers: $25.00, all wholesalers: $250 (waived if have cigarette wholesaler license); storage warehouse:

$ 25.00

Note: The Alcoholic Beverages Division merged with the Cigarette Tax Unit in fiscal year 1972. Tobacco revenue begins in fiscal year 1972.

STATE GROSS REVENUE: 1933 - 2014

State of Maryland - Alcohol and Tobacco Tax Annual Report – 2014 Page 11

State of Maryland - Alcohol and Tobacco Tax Annual Report -2014

Page 12

% Of

Gross

Net

Total

Receipts

Refunds

Receipts

Receipts

Receipts:

Spirits at $1.50 per wine gallon

$

16,131,020

$

146

$

16,130,874

3.7%

Wine at $.40 per gallon

6,105,224

472

6,104,752

1.4%

Beer at $.09 per gallon

8,751,720

179,370

8,572,350

2.0%

Cigarette Tax

370,507,391

2,117,348

368,390,043

84.7%

Other Tobacco Tax

33,964,268

1,352

33,962,916

7.8%

Alcoholic Beverage License Fees

429,963

1,250

428,713

0.1%

Alcoholic Beverage Permit Fees

1,184,145

225

1,183,920

0.3%

Miscellaneous Alcoholic Beverages

50,950

1,000

49,950

Miscellaneous Tobacco Tax

55,595

5,151

50,444

Fines

2,200

-

2,200

Other Tobacco License Fees

14,800

-

14,800

SUBTOTAL

$

437,197,276

$

2,306,314

$

434,890,962

100.0%

Notes:

and seized cash.

Other Tobacco License Fees:

manufacturers, wholesalers, and storage warehouse. Fee waived for OTP wholesaler who has a cigarette wholesaler license. OTP licenses effective 5/1/2011. Cigarette license fees paid to special fund for cost of enforcing Cigarette Sales Below Cost Act.

GROSS REVENUE NET OF REFUNDS

Miscellaneous Alcoholic Beverages are Tax Application Fees,

State of Maryland - Alcohol and Tobacco Tax Annual Report 2014- Page 13

Distilled Spirits

MONTH 2011 2012 2013 2014 July $ 3,653 $ 5,103 $ 6,392 164,084 August 1,090,974 1,083,729 1,066,315 1,119,276 September 1,241,994 1,265,587 1,354,790 1,295,370 October 1,304,146 1,363,891 1,183,935 1,152,878 November 1,366,632 1,524,607 1,619,166 1,667,412 December 1,466,976 1,416,202 1,465,339 1,373,341 January 1,388,356 1,480,282 1,450,681 1,661,990 February 830,745 884,267 953,706 932,096 March 1,100,065 1,210,285 1,315,482 1,272,759 April 1,375,343 1,405,788 1,261,215 1,206,482 May 1,369,325 1,319,170 1,317,639 1,315,040 June 3,036,738 3,011,570 2,841,669 2,970,146 TOTAL _{$ 15,574,948 $ 15,970,480 $ 15,836,330 $ 16,130,874}

% change from prior year 5.9% 2.5% -0.8% 2%

Wine

MONTH 2011 2012 2013 2014 July $ 18,148 $ 26,617 $ 33,679 20,638 August 406,500 403,343 433,196 442,537 September 434,383 485,715 512,420 486,229 October 461,712 488,122 466,889 475,111 November 485,983 491,560 536,132 573,784 December 553,074 583,161 605,293 540,512 January 603,349 634,102 615,470 676,156 February 373,505 389,123 439,634 408,675 March 467,562 513,362 483,678 515,571 April 528,103 484,125 485,641 478,162 May 500,049 483,820 485,838 515,370 June 963,936 1,025,659 1,037,728 972,007 TOTAL _{$ 5,796,304 $ 6,008,709 $ 6,135,598 $ 6,104,752}

% change from prior year 8.0% 3.7% 2.1% -0.5%

Beer

MONTH 2011 2012 2013 2014 July $ 344,561 $ 65,246 $ 65,583 62,131 August 567,119 853,410 899,869 894,931 September 902,866 876,358 836,841 805,776 October 769,338 759,984 696,791 558,031 November 711,291 628,799 685,795 703,841 December 659,421 683,501 743,354 674,989 January 631,047 634,780 645,949 623,211 February 619,395 654,800 619,989 607,706 March 618,286 694,952 643,279 653,019 April 754,757 789,516 690,180 701,273 May 757,634 726,848 779,950 759,189 June 1,771,766 1,662,114 1,587,442 1,528,252 TOTAL _{$ 9,107,481 $ 9,030,310 $ 8,895,022 $ 8,572,349}

% change from prior year -1.4% -0.8% -1.5% -3.6%

ALCOHOLIC BEVERAGES REVENUE

State of Maryland - Alcohol and Tobacco Tax Annual Report -2014 Page 14

Cigarettes

MONTH 2011 2012 2013 2014 July $ 10,552,294 $ 8,776,820 $ 8,836,652 7,846,610 August 35,121,420 38,385,802 33,231,779 31,477,510 September 35,870,535 35,357,167 35,351,427 32,041,438 October 32,206,063 35,833,769 29,693,822 32,358,081 November 34,560,962 30,621,552 34,284,437 34,633,119 December 33,096,918 33,523,746 31,585,402 29,765,322 January 27,328,588 29,287,144 30,010,392 27,051,208 February 30,215,600 27,722,118 21,666,630 26,216,843 March 31,190,467 29,864,195 33,494,362 28,233,800 April 30,464,397 33,683,405 30,517,959 34,224,275 May 33,112,054 32,948,361 31,241,965 31,723,265 June 61,539,499 61,699,558 59,397,317 52,818,573 TOTAL $ 395,258,797 $ 397,703,637 $ 379,312,145 $ 368,390,044

% change from prior year _{0.2% 0.6% -4.6% -2.9%}

Other Tobacco Products

MONTH 2011 2012 2013 2014 July $ 326,462 $ 241,261 $ 364,061 669,432 August 1,000,763 949,065 2,831,775 2,476,152 September 983,739 974,523 3,297,503 2,776,020 October 1,211,352 1,275,966 3,139,577 3,422,421 November 916,433 920,704 2,826,410 2812130 December 884,507 1,111,746 2,924,140 2431529 January 1,159,359 1,106,513 3,086,334 2938545 February 759,072 882,625 2,536,998 2154112 March 1,058,310 988,297 2,035,574 2670355 April 1,225,444 1,242,245 3,578,334 2,935,713 May 923,874 980,644 2,434,011 2,742,944 June 2,054,847 2,130,200 5,098,793 5,933,562 TOTAL $ 12,504,162 $ 12,803,788 $ 34,153,510 $ 33,962,915

% change from prior year 13.9% 2.4% 166.7% -0.6%

TOBACCO REVENUE

State of Maryland - Alcohol and Tobacco Tax Annual Report -2014

Page 15 Licenses

Issued Revenue

FY2014 Annual Fee Collected Total

Alcohol License Fees:

49 Application $ 200 $ 9,750

507 Filing Fee 30 15,200

555 $ 24,950

Manufacturer's Licenses:

20 Distillery (Cost Varies) 16,750

47 Rectifying (Cost Varies) 27,150

3

Winery (Cost Varies) 2,063 71 Limited Winery (Cost Varies) 13,590

18 Brewery (Cost Varies) 25,875

2 Pub-Brewery (Cost Varies) 1,000 27 Micro-Brewery (Cost Varies) 12,750

5 Farm Brewery (Cost Varies) 700

193 $ 99,878

Wholesaler's Licenses

55 Beer, Wine and Liquor (Cost Varies) 103,520 23 Wine and Liquor (Cost Varies) 39,375 12 Beer and Wine (Cost Varies) 15,625

9 Beer (Cost Varies) 11,250

23 Wine (Cost Varies) 28,438

58 Limited Winery (Cost Varies) 2,765 27 Limited Beer (Cost Varies) 1,138

207 202,110

Railroad Licenses:

2 Beer, Wine and Liquor $ 200.00 400 400 2

Steamboat Licenses:

50 Beer, Wine and Liquor (Cost Varies) 7,275 7,275 50

Airplane Licenses:

9 Beer, Wine and Liquor $ 200.00 1,800 1,800 9

Caterer's Statewide:

64 Alcoholic Beverages (Cost Varies) 117,250 117,250 64 Cigarette Licenses: 17 Manufacturer 25 425 52 Wholesaler 750 39,000 38 Subwholesaler 500 19,000 1 Vendor 500 500 1 Storage Warehouse 25 25

8 Application Fee (Cost Varies) 1,450

97 Filing Fee 30 2,900

214 63,300

Other Tobacco Products Licenses:

2 Manufacturer 25 50 59 Wholesaler 250 14,750 Storage Warehouse 25 -61 14,800

1294 Total Licenses Issued $ 531,763

State of Maryland - Alcohol and Tobacco Tax Annual Report -2014

Page 16

STATE REVENUE - ALCOHOL PERMITS

Permits

Issued

Revenue

FY201

4

Annual Fee

Collected

397

Alcohol Awareness Instructor

$

5

$

1,985

23

Alcohol Awareness Program

15

345

29

Brewery Special Event

25

725

171

Bulk Transfer

200

34,200

105

Change of Domicile

5

525

821

Direct Wine Sellers

200

164,200

2

Common Carrier

100

200

7

Family Beer and Wine

400

2,800

11

Import and Export

75

825

63

Individual Storage

50

3,150

47

Individual Transportation

10

470

6

Non-Beverage

50

300

1,480

Non-Resident Dealer

200

296,000

10

Non-Resident Storage

500

5,000

54

Non-Resident Winery

50

2,700

3

Private Bulk Sale

25

75

20

Public Storage

75

1,500

13

Public Storage and Transportation

200

2,600

489

Public Transportation

75

36,675

16

Resident Dealer

200

3,200

2,802

Solicitor

50

140,100

47,829

Vehicle Identification Cards

10

478,285

6

Wine Aution

10

60

6

Wine Exhibition

50

300

56

Winery Offsite

100

5,600

21

Winery Festival

100

2,100

54,487

$

1,183,920

State of Maryland - Alcohol and Tobacco Tax Annual Report -2014

Page 17

Per Capita Gallons

Per Capita Gallons

Distilled

Distilled

County

Spirits

Wine

Beer

County

Spirits Wine

Beer

Allegany

1.79

1.40

23.50

Harford

1.52

2.49

17.15

Anne Arundel

2.28

3.99

20.07

Howard

1.51

3.02

12.16

Baltimore

1.96

2.75

15.40

Kent

2.55

4.05

22.70

Baltimore City

2.35

2.32

17.69

Montgomery

1.06

2.43

9.45

Calvert

1.92

2.76

20.18

Prince George's

1.69

1.51

13.74

Caroline

1.50

1.41

20.41

Queen Anne's

2.07

1.82

23.24

Carroll

1.62

2.71

18.75

St. Mary's

1.53

1.15

18.32

Cecil

2.97

3.21

27.03

Somerset

1.02

1.15

13.80

Charles

2.06

1.69

15.14

Talbot

2.45

5.92

19.96

Dorchester

1.69

1.82

22.19

Washington

1.95

1.66

20.31

Frederick

1.74

2.65

17.60

Wicomico

1.06

1.86

19.62

Garrett

2.44

2.50

25.63

Worcester

5.59

5.56

55.59

Note:

These figures are based on deliveries to retail licensees in the subdivisions by Maryland wholesaler licensees.

PER CAPITA CONSUMPTION

State of Maryland - Alcohol and Tobacco Tax Annual Report -2014

Page 18

PER CAPITA TAX DOLLARS AND CONSUMPTION

ALCOHOLIC BEVERAGES AND CIGARETTES

Per Capita Tax Dollars

(Based on Net Revenue)

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Distilled Spirits

$

2.369

$

2.440

$

2.522

$

2.551

$

2.611

$

2.661

$

2.698

$

2.722

$

2.674

$

2.703

Wine

0.864

0.869

0.908

0.929

0.952

0.983

1.004

$1.024

1.036

1.023

Beer

1.685

1.683

1.677

1.682

1.614

1.603

1.570

$1.539

1.502

1.436

Total

$

4.918

$

4.992

$

5.107

$

5.162

$

5.177

$

5.247

$

5.272

$

5.285

$

5.212

$

5.162

Cigarettes

$

48.096

$

48.403

$

47.786

$

60.614

$

69.992

$

69.288

$

68.454

$

67.785

$

64.039

$

61.732

Per Capita Consumption in Gallons

(Based on Deliveries to Retailers)

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Distilled Spirits

1.581

1.620

1.670

1.686

1.729

1.771

1.787

1.794

1.802

1.791

Wine

2.100

2.132

2.221

2.276

2.324

2.404

2.450

2.497

2.498

2.501

Beer *

18.453

18.496

18.226

18.285

17.962

17.691

17.162

16.743

16.170

15.990

Total

22.134

22.248

22.117

22.247

22.015

21.866

21.399

21.034

20.470

20.282

Cigarettes

48.766

48.944

48.262

43.251

35.441

35.022

31.731

34.220

32.359

31.400

* Based on Maryland Department of Health population estimates. Sources: (1) U.S. Census Bureau, http://quickfacts.census.gov

(2) Brief Economic Facts - Counties of Maryland and Baltimore City Maryland Department of Business & Economic Development

State of Maryland - Alcohol and Tobacco Tax Annual Report -2014

Page 19

Cigarettes (Packs of 20)* 187,379,700

Note: Sales by political subdivisions are not available for cigarettes

Deliveries Statewide Total Gallons

Distilled Spirits 10,690,078

Wine 14,925,822

Beer 95,422,720

Deliveries by Political Subdivision

Distilled Spirits Wine Beer

Allegany 131,674 103,171 1,727,883 Anne Arundel 1,268,693 2,217,596 11,152,555 Baltimore 1,617,006 2,261,807 12,677,447 Baltimore City 1,462,512 1,442,592 11,008,021 Calvert 173,577 249,593 1,825,667 Caroline 48,903 45,980 667,341 Carroll 271,744 454,595 3,142,559 Cecil 302,536 326,671 2,754,409 Charles 314,254 257,956 2,313,959 Dorchester 55,243 59,464 724,874 Frederick 420,955 640,161 4,249,462 Garrett 73,011 74,652 765,919 Harford 378,193 620,757 4,273,292 Howard 461,325 918,663 3,703,301 Kent 50,903 80,787 452,790 Montgomery 1,077,724 2,474,444 9,607,246 Prince George's 1,506,219 1,347,776 12,232,704 Queen Anne's 100,583 171,730 1,127,610 St. Mary's 167,752 200,078 2,008,369 Somerset 26,788 30,128 362,462 Talbot 92,932 224,393 757,222 Washington 292,361 248,764 3,038,184 Wicomico 106,649 187,222 1,979,737 Worcester 288,541 286,842 2,869,707 TOTALS 10,690,078 14,925,822 95,422,720

CIGARETTE SALES STATEWIDE

State of Maryland - Alcohol and Tobacco Tax Annual Report -2014

Page 20

Fiscal Sales Sales to Sales to Sales %

Year Retailers Winery Samples Wholesalers Out-of-State Other Total Change

2003 13,504 49,785 7,472 40,765 1,312 0 112,838 13.2 % 2004 16,996 56,705 6,172 58,377 828 0 139,076 23.3 2005 20,802 62,497 4,919 72,328 1,035 201 161,783 16.3 2006 21,879 71,292 5,193 92,447 865 183 191,859 18.6 2007 13,748 84,295 6,205 123,123 1,167 119 228,658 19.2 2008 19,678 97,871 6,872 144,876 910 73 270,280 18.2 2009 31,657 101,735 9,451 133,867 1,279 129 278,117 2.9 2010 39,256 100,329 9,620 154,998 5,361 102 309,666 11.3 2011 34,125 117,148 12,438 179,294 2,188 406 345,599 11.6 2012 33,896 117,748 15,070 147,182 2,714 232 316,842 (8.3)

2013

36,808

140,918

16,594

144,554

4,508

1,298

344,680

8.8

2014

36,294

161,707

19,592

160,507

4,211

2,188

384,498

11.6 %

State of Maryland - Alcohol and Tobacco Tax Annual Report -2014

Page 21

Fiscal

Sales at the

Sales To

Sales

Consumed

Returned To

Tour

%

Year

Brewery

Wholesalers

Out-of-State

On Premise

Brewery

Sales

Total

Change

2003

368,717

606,415

970,878

5,998

(4,836)

1,947,173

2.5

2004

364,969

526,071

613,586

2,595

(1,725)

1,505,497

(22.7)

2005

343,529

638,157

738,342

1,561

(3,584)

1,718,005

14.1

2006

311,843

691,824

936,465

1,068

(2,996)

1,938,204

12.8

2007

429,717

580,387

1,557,511

75

(4,517)

2,563,173

32.2

2008

322,611

499,096

1,539,660

0

(3,204)

2,358,163

(8.0)

2009

319,997

491,198

1,617,973

0

(2,956)

2,426,213

2.9

2010

451,356

774,777

1,647,804

3,210

(29,658)

2,847,489

17.4

2011

260,647

1,045,959

2,253,338

2,875

(46,330)

3,516,489

23.5

2012 340,295 1,277,382 2,294,544 9,880 17,387 3,939,488

12.0

2013

390,701

1,599,903

2,562,829

20,634

15,372

4,589,440

16.5

2014

351,761

1,878,442

2,739,363

30,106

17,778

384

5,017,834

9.3

%

SUMMARY OF ACTIVITIES

Audits Completed:

Brewery (Maryland)

16

Beer – Wholesaler (Maryland)

31

Rectifier, Distillery or Winery

19

Liquor and Wine Wholesaler (Maryland)

48

Cigarette Wholesaler

20

Other Tobacco Products

11

145

Inspection and Verification of Monthly Returns and Reports:

Maryland Manufacturer and Wholesaler:

Brewery Tax Return

480

Beer Wholesaler Report

801

Distilled Spirits and Wine Tax Returns

2,584

Railroad, Steamboat and Airline Tax Returns

262

Out-of-State Brewer Tax Return

2,685

Out-of-State Wineries Tax Return

518

Cigarette Wholesaler Monthly Report

567

Cigarette Manufacturer Sample Tax Return

211

Cigarette Stamp Purchases and Payments Return

559

Other Tobacco Products Tax Return (Wholesaler)

1,543

Other Tobacco Products Tax Return (Retailer)

427

Direct Wine Shippers

2543

13,180

Refund Claims Verified and Approved:

Amount

No. of Claims

Alcoholic Beverages:

Beer

$ 179,396.24 24

Wine

$ 445.78

5

Distilled Spirits

$ 145.86

1

Cigarettes:

$ 2,117,348.25

9

Other tobacco products:

Wholesaler

$ 858.40

7

Retailer

$ 493.37

2

Floor Tax

$ 150.60

1

Escrow:

$ 23,432.22

174

Issued Permits:

$ 225.00

2

Issued License:

$ 1,250.00

1

Cash Bond:

$ 6,000.00

2

228

Other Reports:

Auditor’s reports reviewed and entered

145

Credit Control Reports received and checked

5,529

Returned check reports received and checked

462

Keg books

934

Public storage-transportation reports

182

Import-Export, Non-resident storage reports

106

7,358

Total

20,911

State of Maryland - Alcohol and Tobacco Tax Annual Report - 2014 Page 22