Alcohol prices could increase with new bill; Legislation awaits Ivey's signature

By NATALIE WILLIAMSON
Reporter
natalie@gulfcoastmedia.com
Posted 5/9/24

You might be paying more at ABC stores starting in the next few weeks due to a new bill that currently sits on the desk of Gov. Kay Ivey waiting to be signed into law.

Senate Bill 309, which is …

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Alcohol prices could increase with new bill; Legislation awaits Ivey's signature

Posted

You might be paying more at ABC stores starting in the next few weeks due to a new bill that currently sits on the desk of Gov. Kay Ivey waiting to be signed into law.

Senate Bill 309, which is sponsored by Senate Majority Leader Steve Livingston (R-Scottsboro), will make state-owned ABC stores pay property taxes, which could be passed to customers.

According to a study by the National Institutes of Health (NIH), increasing the prices for alcoholic beverages lead to reductions in drinking, heavy drinking and the consequences of alcohol use and abuse.

Currently, there is already an extra 2% state sales tax on alcoholic drinks that are sold in state-run ABC retail stores in Alabama. On top of that, there are local sales taxes based on where the sale happens.

SB309 is suggesting the state sales tax on alcohol matches the combined local sales tax rate. For example, if one buys alcohol in a county or city with a 2% local sales tax, the total sales tax would also be 2%, making it simpler for consumers and ensuring fairness.

The bill passed the House 85-8 with four abstentions after passing the Senate 29-1, and it now awaits the approval of Ivey.

If approved and signed into law, the money from these taxes would go toward counties (25%) and municipalities (75%).