HB 212 LIQUOR TAX RATE & FUND

Rep Micaela Lara Cadena

Actions: [3] HHHC/HTRC-HHHC

Scheduled: Not Scheduled

 House Bill 212 (HB 212) changes the rates of the Liquor Tax to a percentage and redistributes the tax revenue. HB 212 creates the Alcohol and Substance Use Harms Alleviation Fund and eliminates fortified wine as a distinct type of alcohol in the Liquor Excise Tax Act. 

 House Bill 212 (HB 212) changes the Liquor Tax (tax) rates to a percentage of volume of liters or barrels sold instead of the tax being calculated based on the volume of beer, wine, cider, spiritous liquors sold. The bill keeps intact special rates for microbrewers, small winegrowers, and craft distillers.

Barrel is defined as 31 gallons. Fortified wine is deleted as a special rate and will be taxed the same as other wines. The bill clarifies that the tax is on the price paid for alcohol sold by wholesalers.

HB 212 creates the Alcohol and Substance Use Harms Alleviation Fund (fund). The fund is subject to legislative appropriation for alcohol and substance use harm prevention, treatment, and recovery services in the state and lands of Indian nations, tribes, and pueblos. 

HB 212 repeals the Local DWI Grant Program and transfers the balance of Local DWI Grant Fund to the new fund.

HB 212 distributes the tax revenue monthly as follows:
Drug Court Fund, $250,000 monthly;
General Fund, $2,084,000; and
Alcohol and Substance Use Harms Alleviation Fund, remainder of revenue.

If passed and signed into the law, HB 212 is effective July 1, 2025.
 

 The estimate tax revenue for Fiscal Year 2023 from Liquor Tax monthly distributions:
Drug Court Fund (5%), $206,250
Local DWI Grant Fund (45%), $1,856,250
Certain Class A Counties (flat amount), $20,750
General Fund (remainder of monthly revenue), $2,041,750

The current tax rates are based on flat dollar rates times volume sold based on type of beverage. Some volumes are measured in liters and some in gallons.
 

 HB 212 is related to HB 179, HB 213, HB 217, and SB 147.