Maryland 2022 Regular Session

Maryland House Bill HB867

Introduced
2/7/22  

Caption

Alcoholic Beverage Tax - Ready-to-Drink Cocktails

Impact

The implementation of HB 867 is significant as it aligns Maryland's alcohol tax structure with current market realities, particularly in the context of the growing popularity of ready-to-drink cocktails. This change is expected to affect both the revenue generated from taxes on these products and the pricing structure within the state. Furthermore, by clarifying the tax implications for ready-to-drink cocktails, the bill seeks to provide a clearer regulatory environment for producers and retailers, potentially promoting economic activity in the beverage sector.

Summary

House Bill 867 establishes new alcoholic beverage tax rates specifically for ready-to-drink cocktails, which are defined as beverages that contain distilled spirits mixed with non-alcoholic beverages, may include wine, and contain up to 12% alcohol by volume. The bill aims to regulate the taxation of these beverages in a manner consistent with existing laws addressing distilled spirits and other alcoholic drinks. It introduces specific tax rates to accommodate this emerging category of alcoholic beverage, reflecting changing consumer preferences and market trends.

Contention

While the bill is designed to standardize the taxation framework, there may be contention regarding how the new tax rates will affect consumers and businesses. Critics may argue that higher taxes on ready-to-drink cocktails could discourage consumption or burden consumers financially. Additionally, there may be concerns regarding the equitable treatment of different alcoholic beverages under the tax code, as established categories might not reflect the realities of modern consumer choices. Stakeholders in the alcoholic beverage industry may engage in discussions about the fairness and effectiveness of these new tax measures.

Companion Bills

No companion bills found.

Previously Filed As

MD HB663

Alcoholic Beverage Tax - Ready-to-Drink Cocktails

MD SB793

Alcoholic Beverage Tax - Ready-to-Drink Cocktails

MD HB2122

Alcoholic beverages; Oklahoma Cocktails To Go Act of 2021; cocktails or mixed drinks to go; effective date; emergency.

MD HB1682

Alcoholic beverages; distiller license; mixed beverages; cocktails; emergency.

MD HB1682

Alcoholic beverages; distiller license; mixed beverages; cocktails; emergency.

MD S08010

Adds spirit-based ready-to-drink cocktails to the definition of beverage; includes ready-to-drink cocktail containers in the state bottle deposit incentive program.

MD HB2627

Ready-to-drink spirits products; tax

MD HB2888

Ready-to-drink spirits products; tax

MD HB2769

Ready-to-drink spirits products; tax

MD SB698

Alcoholic Beverages - Maryland Alcohol Manufacturing and Promotion

Similar Bills

No similar bills found.