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HB395 • 2026

Liquor; mark up fee charged by Alcoholic Beverage Control Board further provided for

Liquor; mark up fee charged by Alcoholic Beverage Control Board further provided for

Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Whitt
Last action
2026-03-19
Official status
Passed by House of Origin
Effective date
Not listed

Plain English Breakdown

The official source material does not provide information on how the bill will affect liquor prices for consumers or consequences if the mark up fee exceeds the limit.

Liquor Markup Fee Rules

This bill changes how the Alcoholic Beverage Control Board calculates a markup fee on liquor sales by specifying what constitutes 'cost of merchandise'.

What This Bill Does

  • Defines 'mark up' as the percentage amount added to the cost of spirituous or vinous liquors sold by the board, excluding taxes.
  • Specifies that 'cost of merchandise' only includes the amount the board pays for case lots of liquor.
  • Limits the mark up fee to no more than 16.99 percent of the cost of merchandise plus freight on liquor sales.
  • Updates existing laws to make them clearer and easier to understand.

Who It Names or Affects

  • The Alcoholic Beverage Control Board
  • Wholesalers who buy liquor in case lots from the board

Terms To Know

mark up fee
An extra charge added to the cost of liquor by the Alcoholic Beverage Control Board.
case lot sales
Sales where a wholesaler buys many bottles or cases of liquor at once from the board.

Limits and Unknowns

  • The bill does not specify what happens if the board tries to increase the mark up fee beyond the limit.
  • It is unclear how this change will affect liquor prices for consumers.

Bill History

  1. 2026-03-19 House

    Motion to Read a Third Time and Pass - Adopted Roll Call 999 (Yeas 76, Nays 13)

  2. 2026-03-19 House

    Third Reading in House of Origin (Yeas 82, Nays 8)

  3. 2026-03-11 House

    Read for the Second Time and placed on the Calendar

  4. 2026-03-11 House

    Reported Out of Committee House of Origin

  5. 2026-02-05 House

    Pending Committee Action in House of Origin

  6. 2026-02-05 House

    Read for the first time and referred to the House Committee on Economic Development and Tourism

Official Summary Text

Liquor; mark up fee charged by Alcoholic Beverage Control Board further provided for

Current Bill Text

Read the full stored bill text 
HB395 INTRODUCED
Page 0
HB395
119KHL3-1
By Representative Whitt
RFD: Economic Development and Tourism
First Read: 05-Feb-26
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119KHL3-1 02/04/2026 PMG (L)PMG 2026-686
Page 1
First Read: 05-Feb-26
SYNOPSIS:
Under existing law, the Alcoholic Beverage
Control Board charges a mark up fee on all wholesale
case lot sales of liquor. The mark up can be no more
than 16.99 percent of the cost of merchandise plus
freight costs.
This bill would provide that the term "cost of
merchandise" shall only include the amount the board
pays for case lots of liquor.
This bill would also make nonsubstantive,
technical revisions to update the existing code
language to current style.
A BILL
TO BE ENTITLED
AN ACT
Relating to liquor; to amend Section 28-3-53.2, Code of
Alabama 1975, to provide greater specificity to what
constitutes the mark up fee charged by the board on wholesale
case lot sales of liquor.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 28-3-53.2, Code of Alabama 1975, is
amended to read as follows:
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HB395 INTRODUCED
Page 2
amended to read as follows:
"§28-3-53.2
(a) The word board, wherever used in this section,
shall mean the Alabama Alcoholic Beverage Control Board
provided for in Chapter 3, Title 28. The term mark up,
wherever used in this section shall mean For purposes of this
section, the term "mark up" means the percentage amount added
to cost of merchandise plus freight on spirituous or vinous
liquors liquor sold by the board, exclusive of taxes
heretofore levied under this article with respect thereto to
liquor, and the term "cost of merchandise" only includes the
amount the board pays for case lots of liquor .
(b) The total amount of the additional mark up on cost
of merchandise, levied by the Alcoholic Beverage Control Board
board subsequent to June 30, 1983, shall be designated to the
credit of the State General Fund of the state .
(c) The board shall be prohibited from increasing the
mark up on wholesale case lot sales of liquor above 16.99
percent of the cost of merchandise plus freight subsequent to
December 1, 2004."
Section 2. This act shall become effective on October
1, 2026.
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