LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6015 NOTE PREPARED: Feb 20, 2024
BILL NUMBER: HB 1025 BILL AMENDED:
SUBJECT: Mixed Beverages.
FIRST AUTHOR: Rep. Manning BILL STATUS: As Passed Senate
FIRST SPONSOR: Sen. Walker K
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill adds a definition of "mixed beverage". It also allows the holder of a wine
wholesaler's permit to take certain actions concerning mixed beverages and flavored malt beverages.
Effective Date: July 1, 2024.
Explanation of State Expenditures: Alcohol and Tobacco Commission (ATC): The ATC would administer
and enforce the bill’s provisions allowing purchases and sales of mixed beverages by wine wholesalers. The
bill’s requirements are within the ATC’s routine administrative functions and should be able to be
implemented with no additional appropriations, assuming near customary agency staffing and resource levels.
Explanation of State Revenues: Alcoholic Beverage Tax: The bill adds a definition for mixed beverage and
allows wine wholesalers to sell mixed beverages to a liquor retailer, supplemental caterer, liquor dealer,
liquor wholesaler, or wine wholesaler permitee. Currently, only liquor wholesalers can sell mixed beverages.
To the extent the expanded distribution increases the number of mixed beverages sold, Alcoholic Beverage
Tax revenue may increase by an indeterminate amount. However, the impact is likely to be small.
Alcoholic Beverage Tax on mixed beverages as defined in the bill is $0.47 per gallon. Revenue is distributed
to the following funds: General Fund ($0.25), State Construction Fund ($0.16), Enforcement and
Administration Fund ($0.04), and Addiction Services Fund ($0.02). Of the amount distributed to the General
Fund, 50% is allocated to cities and towns based on population.
Explanation of Local Expenditures:
HB 1025 1 Explanation of Local Revenues: Alcoholic Beverage Tax: To the extent Alcoholic Beverage Tax revenue
increases, distributions to cities and towns would increase. [See Explanation of State Revenues.]
State Agencies Affected: Alcohol and Tobacco Commission.
Local Agencies Affected: Cities and towns.
Information Sources: Legislative Services Agency, Indiana Handbook of Taxes, Revenues, and
Appropriations, FY 2022.
Fiscal Analyst: Nate Bodnar, 317-234-9476.
HB 1025 2