SB 147 LIQUOR TAX INCREASE & USE

Sen Antoinette Sedillo-Lopez

Actions: [2] SCC/STBTC/SFC-SCC

Scheduled: Not Scheduled

 Senate Bill 147 (SB 147) increases Liquor Tax rates. SB 147 provides for rate increases determined by inflation. The bill creates a new fund and makes an appropriation. 

 Senate Bill 147 (SB 147) 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.

SB 147 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. 

SB 147 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 SB 147 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.

 

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