Mixed spirit beverages, providing for distribution, retail sale, and tax
Impact
The bill includes measures for regulatory oversight and the establishment of a three-tier distribution system—suppliers, wholesalers, and retailers. It mandates that manufacturers and suppliers enter into exclusive sales territory agreements with wholesalers, which could significantly alter the landscape of alcohol sales in Alabama. Additionally, it introduces an excise tax based on sales volume, which is intended to fund regulatory activities. This tax, levied at 2.9 cents per ounce, will be added to the sales price and collected from purchasers at retail.
Summary
SB268 establishes a new category of alcoholic beverages in Alabama called 'mixed spirit beverages,' which are defined as ready-to-drink products containing no more than seven percent alcohol by volume. Under existing law, products with low alcohol content are treated similarly to liquor, often sold at designated ABC stores. This bill seeks to create a separate licensing and distribution structure for mixed spirit beverages, allowing them to be handled differently from traditional liquor and facilitating broader access in retail markets.
Contention
Although the bill's intention is to streamline the sale of mixed spirit beverages, it could face contention regarding its potential effects on local businesses and traditional distribution channels. Critics may argue that the exclusive sales territory requirements could limit competition among wholesalers, while proponents assert that it will reduce illegal distribution issues and ensure quality control. The establishment of an excise tax may also be contentious, as stakeholders debate the appropriate level of taxation in balance with consumer access and market fairness.
Tax delinquent properties, provides for distribution of excess funds from certain tax sale, actions to foreclose and quiet title, public auction demanded and distribution of proceeds, distribution of surplus proceeds, limited application of act.
Sales and use tax, simplified sellers use tax, municipalities, distribution to be adjusted based on population adjusted for annexations annually based on report of U.S. Secretary of Commerce
Liquor: other; leasing, selling, and transferring portions of certain alternating proprietors under approval of commission; allow. Amends secs. 105 & 603 of 1998 PA 58 (MCL 436.1105 & 436.1603).
Relating to alcoholic beverages; to amend Sections 28-3-1, 28-3A-3, 28-3A-21, and 28-3A-23, Code of Alabama 1975 and add Sections 28-3-208, 28-3A-9.1, and 28-3A-17.2 to the Code of Alabama 1975; to define a new category of low-alcohol content liquor beverages called mixed spirit beverages; to require all mixed spirit beverages, other than those distributed by the Alcoholic Beverage Control Board, to be distributed through a licensed wholesaler; to levy taxes upon the distribution of these beverages; to provide for licensure of retailers of mixed spirit beverages and set a fee for licensure; to add Chapter 8B to Title 28 of the Code of Alabama 1975; to require licensed importers, manufacturers, and suppliers of mixed spirit beverages to enter into exclusive franchise agreements with wholesalers; to exempt from the wholesaler franchise laws mixed spirit beverages distributed by the Alcoholic Beverage Control Board and sold at retail at ABC stores; and to make nonsubstantive, technical revisions to update the existing code language to current style.
Liquor: other; leasing, selling, and transferring portions of certain alternating proprietors under approval of commission; allow. Amends secs. 105 & 603 of 1998 PA 58 (MCL 436.1105 & 436.1603).