HB 179 LIQUOR TAX CHANGES & USES

Rep Joanne Ferrary

Actions: [2] HHHC/HTRC-HHHC [5] DP-HTRC

Scheduled: Not Scheduled

 House Bill 179 (HB 179) increases Liquor Tax rates. HB 179 provides for rate increases determined by inflation. The bill creates a new fund and makes an appropriation. 

 House Bill 179 (HB 179) increases Liquor Excise Tax (tax) rates by $0.25 per drink and ties future rate increases to inflation. Prior to July 1, 2028, the tax is increased from $0.07 per drink for wine and spirits to $0.32, fortified wine from $0.13 to $0.38, and from $0.04 to $0.29 for a beer. There is no change for small winegrowers and microbrews.

Beginning by April 30, 2028, the tax rate will increase with inflation.

HB 179 creates the Alcohol Harms Alleviation Fund (fund). The legislature can appropriate funds for alcohol prevention, treatment, and recovery services while prioritizing community-based initiatives where the population is disproportionately impacted. 

HB 179 changes the monthly tax revenue distributions from a percentage of net receipts to dollar amounts:
•	Local DWI Grant Fund from 45% to $2,084,000 
•	Drug Court Fund from 5% to $250,000
•	Alcohol Harms Alleviation Fund, remainder of tax revenue

The effective date of HB 179 is July 1, 2025. 

 Current rates of seven cents per drink for wine and spirits and four cents a drink for beer will remain as will differentially taxing of certain producers. The Liquor Excise Tax distributions will remain $20,750 to a municipality located in a class A county and that has a population of more than 30,000 but fewer than 60,000 people, and 45% of net receipts to the local DWI grant fund. 

 HB 179 duplicates SB 147 and relates to HB 212, HB 213, and HB 217.