The bill amends Sections 28-3-280 and 28-3-281 of the Code of Alabama 1975 to adjust the additional state sales tax rate on alcoholic beverages sold in Alcoholic Beverage Control (ABC) retail stores. The new legal language specifies that this additional tax will now be equal to the combined county and municipal general sales tax rates applicable in the locality where the sale occurs, replacing the previous fixed rate of two percent. The bill also clarifies that the tax will be applied to the retail price of the alcoholic beverages sold, excluding any other taxes.

Additionally, the bill modifies the distribution of the tax proceeds collected by the Alcoholic Beverage Control Board. It introduces a new provision that mandates the Department of Revenue to redistribute the proceeds within each locality to their respective localities, rather than following the previous distribution method outlined in local acts. The bill also retains the Department of Revenue's authority to withhold reasonable charges for handling the taxes, capped at five percent of the total collected. This act is set to take effect on October 1, 2024.

Statutes affected:
Introduced: 28-3-280, 28-3-281
Enrolled: 28-3-280, 28-3-281