Mixed spirit beverages, providing for distribution, retail sale, and tax.
If passed, this bill will impact how low-alcohol beverages are sold and distributed in Alabama. It will require wholesalers to secure specific licenses to distribute mixed spirit beverages, and retailers must also obtain licensing to sell these products both on-premises and off-premises. Additionally, the bill introduces a new privilege or excise tax on the distribution of mixed spirit beverages, intended to support regulatory and administrative functions related to these beverages. The taxation will amount to $0.029 per ounce, collected initially from wholesalers and passed on to consumers.
House Bill 521 introduces a new category of low-alcohol beverages in Alabama, known as 'mixed spirit beverages', which are defined as ready-to-drink mixed liquor beverages containing no more than seven percent alcohol by volume. Currently, such beverages are regulated similarly to liquor and are available only through state-run stores. The bill aims to establish a licensing structure that allows for the manufacture, distribution, and retail sale of these beverages through licensed wholesalers and retailers, significantly altering the existing framework of alcohol sales in the state.
There are notable points of contention surrounding HB521, particularly regarding potential regulation changes and the impact on local businesses. Some stakeholders may argue that this bill centralizes control over alcohol distribution and sales, thereby limiting local discretion in managing alcohol-related policies. Moreover, the exclusive territory allocation for wholesalers as mandated by the bill could be controversial, as it may favor larger distributors at the expense of smaller, local businesses. The concerns revolve around market competition, access for smaller retailers, and the implications of new taxation on consumer prices.