Alcoholic Beverage Tax - Ready-to-Drink Cocktails

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0736*

HOUSE BILL 736
Q7 6lr2380

By: Delegate Ebersole
Introduced and read first time: February 2, 2026
Assigned to: Ways and Means

A BILL ENTITLED

AN ACT concerning 1

Alcoholic Beverage Tax – Ready–to–Drink Cocktails 2

FOR the purpose of establishing the alcoholic beverage tax rates for ready –to–drink 3
cocktails; and generally relating to alcoholic beverage taxes. 4

BY repealing and reenacting, without amendments, 5
Article – Tax – General 6
Section 5–101(a) and (g) 7
Annotated Code of Maryland 8
(2022 Replacement Volume and 2025 Supplement) 9

BY adding to 10
Article – Tax – General 11
Section 5–101(k) 12
Annotated Code of Maryland 13
(2022 Replacement Volume and 2025 Supplement) 14

BY repealing and reenacting, with amendments, 15
Article – Tax – General 16
Section 5–101(k) through (n) and 5–105 17
Annotated Code of Maryland 18
(2022 Replacement Volume and 2025 Supplement) 19

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
That the Laws of Maryland read as follows: 21

Article – Tax – General 22

5–101. 23

(a) In this title the following words have the meanings indicated. 24
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(g) (1) “Distilled spirits” means a distilled alcoholic beverage. 1

(2) “Distilled spirits” includes: 2

(i) alcohol; 3

(ii) brandy; 4

(iii) cordials; 5

(iv) gin; 6

(v) liqueur; 7

(vi) rum; 8

(vii) vodka; 9

(viii) whiskey; and 10

(ix) solutions or mixtures of distilled spirits except fortified wines. 11

(K) “READY–TO–DRINK COCKTAIL” MEANS A BEVERAGE THAT: 12

(1) CONTAINS DISTILLED S PIRITS MIXED WITH NO NALCOHOLIC 13
BEVERAGES AND MAY CONTAIN WINE; 14

(2) IS 12% OR LESS ALCOHOL BY VOLUME; AND 15

(3) IS CONTAINED IN ORIG INAL PACKAGING CONSI STING OF A 16
CONTAINER THAT IS NOT MORE THAN 16 OUNCES. 17

[(k)] (L) “Resident dealer” means a person who is required to obtain a resident 18
dealer’s permit under § 2–125 of the Alcoholic Beverages and Cannabis Article. 19

[(l)] (M) (1) “Retail dealer” means a person who buys an alcoholic beverage 20
for sale to a consumer. 21

(2) “Retail dealer” includes a county department of liquor control, a liquor 22
control board, or the Alcohol Beverage Services for Montgomery County that operates a 23
dispensary. 24

[(m)] (N) (1) “Wholesaler” means a person who buys or import s an alcoholic 25
beverage for sale to another person for resale. 26

HOUSE BILL 736 3

(2) “Wholesaler” includes a county department of liquor control, a liquor 1
control board, or the Alcohol Beverage Services for Montgomery County that operates a 2
wholesale dispensary. 3

[(n)] (O) (1) “Wine” means a fermented alcoholic beverage. 4

(2) “Wine” includes: 5

(i) carbonated, flavored, imitation, sparkling, or still wine; 6

(ii) champagne; 7

(iii) cider; 8

(iv) fortified wine; 9

(v) perry; 10

(vi) sake; and 11

(vii) vermouth. 12

5–105. 13

(a) (1) Except as provided in PARAGRAPH (2) OF THIS SUBSECTION A ND 14
subsection (d) of this section, the alcoholic beverage tax rate for distilled spirits is: 15

[(1)] (I) $1.50 for each gallon or 39.63 cents for each liter; and 16

[(2)] (II) if distilled spirits contain a percentage of alcohol greater than 17
100 proof, an additional tax, for each 1 proof over 100 proof, of 1.5 cents for each gallon or 18
0.3963 cents for each liter. 19

(2) THE ALCOHOLIC BEVERAG E TAX RATE FOR READY –TO–DRINK 20
COCKTAILS IS 60 CENTS FOR EACH GALLON OR 15.85 CENTS FOR EACH LITER. 21

(b) Except as provided in subsection (d) of this section, the alcoholic beverage tax 22
rate for wine is 40 cents for each gallon or 10.57 cents for each liter. 23

(c) Except as provided in subsection (d) of this section, the alcoholic beverage tax 24
rate on beer and mead is 9 cents for each gallon or 2.3778 cents for each liter. 25

(d) The tax imposed under § 5–102(b) of this subtitle shall equal the amount that 26
the discriminating jurisdiction charges a Maryland licensee or permit holder. 27

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 28
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1, 2026. 1