Committee adopts amendment to HB 4 17 but bill fails on tied due-pass vote

Committee members approved an amendment to House Bill 4 17 that would set different tax rates for alcohol sold for on-site consumption and alcohol sold packaged for off-site consumption, then later failed to advance the full bill after the due-pass motion resulted in a 6-6 tie.

The adopted amendment, described by the bill presenter, would set a 3% rate for alcoholic beverages sold and consumed on the retailer's premises and keep a 6% rate for packaged (off-premise) sales. The sponsor said the amendment was intended to include all retailers in the proposal while reducing the on-premise rate from 6% to 3% to address equity concerns.

Committee debate focused on whether the two-tier rate structure would be administratively complex and whether it would disproportionately affect rural businesses, taprooms, breweries and grocery shoppers. "This is just gonna make it so that their POS systems now have to have a whole bunch of extras," Representative Hernandez said, describing impacts for businesses that both serve and sell packaged alcohol. Another member warned that lower-income consumers who primarily shop at grocery stores would face higher packaged prices.

Action and outcome: The committee voted to give a due-pass recommendation to the amendment (6-5). Later, the committee considered the bill as twice-amended; after a roll-call on the bill itself the vote was a 6-6 tie and the due-pass motion on the full bill did not pass.

What this means: The amendment was adopted in committee but the bill did not receive the committee's recommendation to advance because the final due-pass motion failed on a tie. The measure remains in committee pending further action.

Votes at a glance: Amendment due-pass — passed 6-5. Final due-pass on HB 4 17 as amended — tie 6-6; does not pass.