Ivey signs bill tying ABC store liquor sales tax to county, municipal rates
Gov. Kay Ivey signed a bill that matches the sales tax on liquor sold at Alabama Alcoholic Beverage Control stores with the rate as the sales tax on liquor in the county and municipality where a particular ABC store is situated, a spokeswoman for the governor said Monday.
Liquor sold at ABC stores is currently taxed at 2%. The bill signed into law by Ivey, SB309, goes into effect in November.
The law makes the additional sales tax rate at alcohol sold at ABC stores equal to the combined county and municipal general sales tax rate where the purchase is made.
Under the new law, the price of liquor may be going up in some counties.
The bill’s sponsors and backers said the legislation makes it easier for independently owned liquor stores to compete with ABC stores.
SB309 passed the Alabama House of Representatives on May 2 by a vote of 85-8 with four abstentions.
The passed the Alabama Senate by a vote of 29-1 on April 25.