Alabama House votes to raise taxes on alcohol sales at ABC stores

That bottle of bourbon or the bottle of wine you buy at a state ABC store may be a little more expensive in coming weeks.

In a move that supporters say levels the playing field with private alcohol retailers, the Alabama House of Representatives passed a bill Thursday requiring state ABC alcohol retail stores to pay property taxes. Those costs would likely be passed on to alcohol purchasers.

The Senate version was already passed by a bipartisan vote of 85-8. It now goes to Gov. Kay Ivey for her consideration.

Senate Bill 309 is sponsored by Senate Majority Leader Steve Livingston (R-Scottsboro). State Rep. Andy Whitt (R-Harvest) introduced it in the House.

“SB309 is a bill that sets sales taxes being assessed at the state ABC stores will be equal to the local counties and municipalities,” said Whitt. “Basically they are getting on par with whatever everyone else charges. This only affects the state-owned stores.

“It (levels) the playing field for our local mom and pops that have invested in our districts.”

In questioning from Rep. Tim Wadsworth, who opposed the bill, Whitt said it could raise $6.7 million which would go back to the counties and municipalities.

Wadsworth opposed the bill, saying it’s a $6.7 million tax increase in a time of inflation and spiraling prices.

“What in affect we are doing is raising the taxes for people buying alcohol and requiring them to pay an additional $6.7 million,” Wadsworth (R-Arley) said.

“Right, we have found in some recent research that the ABC stores have an advantage over our mom and pops and retailers in our districts,” said Whitt. “Those hundreds-plus ABC stores need to increase this.”

Whitt said the ABC stores do charge sales taxes, “But this is at a rate of six percent and the state is losing some of their funding, but so are the counties and municipalities.”

“It is still a tax increase of $6.7 million,” Wadsworth said.

“If you buy alcohol from an ABC store,” said Whitt.

“I am not for it because we are at a time when inflation is skyrocketing and adding these additional taxes, I feel like would not benefit our area,” Wadsworth said.

“I tell everyone this is a bill for small business basically,” said Rep. Corey Harbison (R-Cullman). “When you go into the state ABC store you currently pay at a flat rate. The state has exempted their own stores from these taxes over the years.

“If I am a private business and I own a liquor store right by the ABC stores I have to charge these taxes. They already have the ability to selling cheaper than I do, now they are charging less taxes. This is something for the small businesses.

“It is not a tax increase. All it does is allow the ABC Stores to charge the tax that the private stores are already collecting.”

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