COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:2115H.01P Bill No.:Perfected HB 1041 Subject:Alcohol; Department of Public Safety; Licenses - Liquor and Beer; Taxation and
Revenue - General; Department of Revenue
Type:Original Date:April 17, 2025Bill Summary:This proposal modifies inspection and gauging fees imposed on barrels of
malt liquor.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028General Revenue($3,430,362)($4,116,434)($4,116,434)Total Estimated Net
Effect on General
Revenue($3,430,362)($4,116,434)($4,116,434)
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Alcohol and Tobacco
Control($150,000)$0$0
Total Estimated Net
Effect on Other State
Funds ($150,000)$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 2115H.01P
Bill No. Perfected HB 1041
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on FTE 000
☒ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Local Government$0 to Unknown$0$0 L.R. No. 2115H.01P
Bill No. Perfected HB 1041
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FISCAL ANALYSIS
ASSUMPTION
Oversight notes House Amendment (HA) No. 1 changes the title of the bill. Oversight assumes
this amendment will have no fiscal impact.
HA No. 2 - §311.332 – Regulation of the donation of alcoholic beverages to certain
organizations for non-resale purposes
In response to similar legislation from the current session (HB 1340), officials from the
Department of Revenue assumed the proposal would have no fiscal impact on their
organization. Oversight does not have any information to the contrary. Therefore, Oversight will
reflect a zero impact in the fiscal note for the DOR.
HA No. 3 - §311.355 – Repeals provisions relating to rebate coupons from manufacturers of
intoxicating liquor
In response to similar legislation from the current session (HCS HB 964), officials from the
Department of Revenue (DOR) state currently manufacturers of intoxicating liquor other than
beer and wine, are allowed to offer coupons to customers for the purchase of their brand of
liquor. These coupons are mail-in rebates from the consumer to the manufacturer. This proposal
is allowing beer manufacturers to offer these types of coupons.
DOR will not be impacted by this provision as the full price of the intoxicating liquor will still be
subject to sales tax at the retail store. The customer is getting the rebate from the manufacturer
after proof of purchase. Therefore, sales tax will have already been collected on the product.
Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero
impact in the fiscal note.
In response to similar legislation from the current session (SB 515), officials from the Office of
Administration - Budget and Planning deferred to the DPS-ATC regarding the potential fiscal
impact of this proposal.
§311.520 – Inspection and gauging fees on barrels of malt liquor
Officials from the Department of Public Safety (DPS) – Alcohol and Tobacco Control (ATC)
state §311.520 is revised to establish a separate inspection and gauging fee for American
brewery malt liquor and foreign import malt liquor. The charge for foreign import malt liquor
will be $1.86 per barrel, which is the current charge for all malt liquor manufactured in, imported
into, and distributed in Missouri. The new charge for American brewery malt liquor will be
$0.62 per barrel, which is 1/3 of what is currently charged. $6,859,765 was collected by the ATC L.R. No. 2115H.01P
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in FY2024 on all malt liquor manufactured in, imported into, and distributed in Missouri. This
change would have reduced the collections by $4,116,434, which will be lost general revenue
each year if this bill is implemented.
The ATC does not currently collect information to identify what inspection and gauging fees
collected are from American brewery or foreign imported malt liquor. To calculate the potential
impact, the ATC took all collections from Missouri manufacturers (American brewery) and
reduced the collections by 1/3, which accounts for $2,514,010 of the lost revenue. To identify the
portion of collections relative to foreign import malt liquor, the ATC looked at the registered
brands for all Missouri licensed importers (solicitors), calculated the percentage of American
brands versus total registered brands per licensee, used that percentage to calculate the estimated
inspection and gauging fees collected on American brewery imported malt liquor, and reduced
those collections by 1/3. For example, if the importer has 120 American brewery registered
brands out of 150 total registered brands, and they paid $5,000 in fees in FY2024, the new fee
structure would reduce their charges to $1,333.333, creating a loss of $3,666.67 in general
revenue (120/150 = .80 American brands x $5,000 = $4,000 FY2024 American brewery fees
paid x 1/3 = $1,333.33 American brewery fees paid with new rate). Using this calculation for all
Missouri licensed importers, the estimated decrease in general revenue is $1,602,424. This
method of calculation for importers may not be reflective of actual distribution, and the actual
could be more or less of fees paid by American brewery versus foreign imported malt liquor;
however, the ATC has no other way to estimate the impact since the division does not currently
collect information to identify which category, American or foreign, the fees collected applies to.
In order to implement the change proposed by the legislation, the ATC will have to add
functionality to the on-line reporting system to be able to differentiate between American
brewery and foreign import malt liquor, as well as establish a different fee rate for each. The
ATC is currently in the process of working with a vendor to develop an on-line licensing system,
which will also shift the current ATC On-line system for reporting to this new system. ATC
would have to add these changes to the new system and estimate it could cost as much as
$150,000.
Oversight has no information to the contrary. Therefore, Oversight will present the fiscal
impact of this proposal as provided by the DPS-ATC.
In response to the previous version of this proposal, officials from the Office of Administration
- Budget and Planning and the Department of Revenue each deferred to the DPS-ATC for the
potential fiscal impact of this proposal.
In response to the previous version of this proposal, officials from the City of Kansas City
assumed the proposal will have no fiscal impact on their organization. Oversight does not have
any information to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal note.
L.R. No. 2115H.01P
Bill No. Perfected HB 1041
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HA No. 4 - §311.2026 – FIFA World Cup Tournament
In response to similar legislation from the current session (HB 1265), officials from the
Department of Revenue (DOR), the City of Kansas City, the City of O’Fallon and the City of
Osceola each assumed the proposal will have no fiscal impact on their respective organizations.
Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero
impact in the fiscal note for these agencies.
Oversight assumes this proposal extends the hours that alcohol is allowed for consumption
during the FIFA World Cup Tournament and expires on July 20, 2026. Oversight will reflect a
$0 to unknown revenue gain for this proposal for local political subdivisions for FY 2026.
Oversight only reflects the responses received from state agencies and political subdivisions;
however, other cities and various county officials were requested to respond to this proposed
legislation but did not. A listing of political subdivisions included in the Missouri Legislative
Information System (MOLIS) database is available upon request.
Bill as a whole
Officials from the Department of Commerce and Insurance and the Department of Public
Safety (DPS) - Missouri Gaming Commission each assume the proposal will have no fiscal
impact on their respective organizations. Oversight does not have any information to the
contrary. Therefore, Oversight will reflect a zero impact in the fiscal note for these agencies.
Rule Promulgation
Officials from the Joint Committee on Administrative Rules assume this proposal is not
anticipated to cause a fiscal impact beyond its current appropriation.
Officials from the Office of the Secretary of State (SOS) note many bills considered by the
General Assembly include provisions allowing or requiring agencies to submit rules and
regulations to implement the act. The SOS is provided with core funding to handle a certain
amount of normal activity resulting from each year's legislative session. The fiscal impact for
this fiscal note to the SOS for Administrative Rules is less than $5,000. The SOS recognizes that
this is a small amount and does not expect that additional funding would be required to meet
these costs. However, the SOS also recognizes that many such bills may be passed by the
General Assembly in a given year and that collectively the costs may be in excess of what the
office can sustain with its core budget. Therefore, the SOS reserves the right to request funding
for the cost of supporting administrative rules requirements should the need arise based on a
review of the finally approved bills signed by the governor. L.R. No. 2115H.01P
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FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028GENERAL REVENUE FUNDLoss – DPS-ATC (§311.520) –
reduction in fees collected($3,430,362)($4,116,434)($4,116,434)
ESTIMATED NET EFFECT ON
THE GENERAL REVENUE FUND($3,430,362)($4,116,434)($4,116,434)
ALCOHOL AND TOBACCO
CONTROL FUND (0544)
Cost – DPS-ATC (§311.520) – on-line
system development ($150,000)$0$0
ESTIMATED NET EFFECT ON
THE ALCOHOL AND TOBACCO
CONTROL FUND($150,000)$0$0
FISCAL IMPACT – Local GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028LOCAL GOVERNMENTS – CITY
OF KANSAS CITY
Revenue - §311.2026 – Potential
additional revenue for alcohol sold
because of extended hours$0 to Unknown$0$0
ESTIMATED NET EFFECT ON
LOCAL GOVERNMENTS
$0 to
Unknown$0$0
FISCAL IMPACT – Small Business
This proposal could have a positive impact on small liquor businesses depending on how much
foreign or American brewery malt liquor they import as the fees they would be required to pay
would be reduced. (§311.520) L.R. No. 2115H.01P
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Small businesses who participate in the extended hours of selling alcohol during the FIFA World
Cup Tournament could have a positive impact from this proposal. (§311.2026)
FISCAL DESCRIPTION
Currently, the Department of Revenue collects $1.86 per barrel for all malt liquors, for the
inspection and gauging of malt liquors.
Beginning January 1, 2026, the Department must collect $0.62 per barrel for all malt liquor
manufactured in an American brewery, and $1.86 per barrel for all foreign import malt liquor,
for the inspection and gauging of malt liquors.
Every manufacturer, out-of-state solicitor, and wholesale dealer must make a duplicate invoice of
the charges showing: (1) The date; (2) Amount and value of each class of liquors shipped or
delivered; and (3) The country of origin for all foreign imports. Each invoice must be retained
for two years.
This bill allows any establishment licensed to sell liquor by the drink at retail for consumption on
the premises to sell, serve, and allow for the consumption of alcohol between 6:00 a.m. and 5:00
a.m. the following day for the duration of the 2026 FIFA World Cup Tournament, June 11, 2026
through July 19, 2026.
Licensees are not required to apply for special or temporary licenses or permits in order to extend
their alcohol sales hours.
Any city, county, district, or other political subdivision may, by ordinance, exempt itself from
the provisions of this bill or modify the temporary period for extended alcohol sales hours.
This provision expires on July 20, 2026. (§311.2026)
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space.
SOURCES OF INFORMATION
Office of Administration - Budget and Planning
Department of Commerce and Insurance
Department of Revenue
Department of Public Safety –
Alcohol and Tobacco Control
Missouri Gaming Commission
Office of the Secretary of State L.R. No. 2115H.01P
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City of Kansas City
Joint Committee on Administrative Rules
Julie MorffJessica HarrisDirectorAssistant DirectorApril 17, 2025April 17, 2025