Alcohol taxes, markups and other charges; exempt up to 10 cases of wine donated annually by a permittee to nonprofits.

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To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Johnson

SENATE BILL NO. 3111

AN ACT TO AMEND SECTIONS 27-71-7 AND 27-71-11, MISSISSIPPI 1
CODE OF 1972, TO EXEMPT FROM ALCOHOL TAXES, MARKUPS AND OTHER 2
CHARGES UP TO 10 CASES OF WINE ANNUALLY THAT ARE DONATED BY A 3
PERMITTEE TO A 501(C)(3) NONPROFIT ORGANIZATION REGISTERED WITH 4
THE MISSISSIPPI SECRETARY OF STATE; AND FOR RELATED PURPOSES. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 6
SECTION 1. Section 27-71-7, Mississippi Code of 1972, is 7
amended as follows: 8
27-71-7. (1) There is hereby levied and assessed an excise 9
tax upon each case of alcoholic beverages sold by the department 10
to be collected from each retail licensee at the time of sale in 11
accordance with the following schedule: 12
(a) Distilled spirits................. $ 2.50 per gallon 13
(b) Sparkling wine and champagne...... $ 1.00 per gallon 14
(c) Other wines, including native wines................ 15
................................................. $ .35 per gallon 16
(2) (a) In addition to the tax levied by subsection (1) of 17
this section, and in addition to any other markup collected, the 18
division shall collect a markup of three percent (3%) on all 19
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alcoholic beverages, as defined in Section 67-1-5, Mississippi 20
Code of 1972, which are sold by the division. The proceeds of the 21
markup shall be collected by the division from each purchaser at 22
the time of purchase. 23
(b) Until June 30, 1987, the revenue derived from this 24
three percent (3%) markup shall be deposited by the division in 25
the State Treasury to the credit of the "Alcoholism Treatment and 26
Rehabilitation Fund," a special fund which is hereby created in 27
the State Treasury, and shall be used by the Division of Alcohol 28
and Drug Abuse of the State Department of Mental Health and public 29
or private centers or organizations solely for funding of 30
treatment and rehabilitation programs for alcoholics and alcohol 31
abusers which are sponsored by the division or public or private 32
centers or organizations in such amounts as the Legislature may 33
appropriate to the division for use by the division or public or 34
private centers or organizations for such programs. Any tax 35
revenue in the fund which is not encumbered at the end of the 36
fiscal year shall lapse to the General Fund. It is the intent of 37
the Legislature that the State Department of Mental Health shall 38
continue to seek funds from other sources and shall use the funds 39
appropriated for the purposes of this section and Section 27-71-29 40
to match all federal funds which may be available for alcoholism 41
treatment and rehabilitation. 42
From and after July 1, 1987, the revenue derived from this 43
three percent (3%) markup shall be deposited by the division in 44
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the State Treasury to the credit of the "Mental Health Programs 45
Fund," a special fund which is hereby created in the State 46
Treasury and shall be used by the State Department of Mental 47
Health for the service programs of the department. Any revenue in 48
the "Alcoholism Treatment and Rehabilitation Fund" which is not 49
encumbered at the end of Fiscal Year 1987 shall be deposited to 50
the credit of the "Mental Health Programs Fund." 51
(3) There is levied and assessed upon the holder of a direct 52
wine shipper's permit, a tax in the amount of fifteen and one-half 53
percent (15.5%) of the sales price of each sale and shipment of 54
wine made to a resident in this state. The holder of a direct 55
wine shipper's permit shall file a monthly report with the 56
department along with a copy of the invoice for each sale and 57
shipment of wine and remit any taxes due; however, no report shall 58
be required for months in which no sales or shipments were made 59
into this state. The report, together with copies of the invoices 60
and the payment of all taxes, shall be filed with the department 61
not later than the twentieth day of the month following the month 62
in which the shipment was made. Permittees who fail to timely 63
file and pay taxes as required by this subsection shall pay a late 64
fee in the amount of Fifty Dollars ($50.00), in addition to any 65
other penalty authorized by this article. 66
(4) Any taxes, markups and charges imposed in this section 67
shall not be imposed on wine donated by a permittee to a nonprofit 68
organization that is exempt from federal income taxation under 69
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Section 501(c)(3) of the Internal Revenue Code and is registered 70
with the Mississippi Secretary of State. No more than ten (10) 71
cases of wine per year may be exempt from such taxes, markups and 72
charges. The department may promulgate rules and regulations for 73
administering this subsection. 74
SECTION 2. Section 27-71-11, Mississippi Code of 1972, is 75
amended as follows: 76
27-71-11. (1) The department shall from time to time by 77
resolution request the State Bond Commission to provide sufficient 78
funds required to maintain an adequate alcoholic beverage 79
inventory. Said funds shall be provided under the provisions of 80
Chapter 557, Laws of 1966. 81
(2) The department shall add to the cost of all alcoholic 82
beverages a markup of twenty-seven and one-half percent (27-1/2%), 83
inclusive of the three percent (3%) markup imposed by Section 84
27-71-7(2). 85
(3) In addition to other excise taxes and markups imposed in 86
this section and in Section 27-71-7, the department shall add to 87
the cost of all alcoholic beverages shipped a charge of 88
Twenty-five Cents (25¢) per case, to be deposited into the ABC 89
Warehouse Improvements Fund created in Section 67-1-211(2). 90
However, any unobligated amounts above Ten Million Dollars 91
($10,000,000.00) remaining in the ABC Warehouse Improvements Fund 92
at the end of a fiscal year shall be transferred to the State 93
General Fund. 94
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(4) Notwithstanding the contract for warehouse and 95
distribution operations under Section 67-1-205, the department 96
shall remain responsible for purchasing and selling alcoholic 97
beverages. The department shall sell alcoholic beverages at 98
uniform prices throughout the state. Pricing for all alcoholic 99
beverages shall be set by the addition of the markup and taxes to 100
the price at which the beverages were purchased by the department. 101
(5) A permittee's order shall qualify for shipping when it 102
includes the minimum number of cases of alcoholic beverages as set 103
by the department. The department shall place qualifying orders 104
in a queue for shipment in the order in which the orders are made. 105
An order of fewer than the minimum number of cases, and special 106
orders, shall be added to the permittee's next qualified shipment. 107
The department shall give sufficient notice of any change in the 108
minimum number of cases for shipping and shall allow the 109
opportunity for comment. 110
(6) The department shall set a per-case shipping fee to be 111
charged to permittees. The department shall adjust the fee to 112
match, as closely as possible, the shipping costs as defined in 113
Section 67-1-201. The shipping fee charged under this subsection 114
shall be deposited to the credit of the ABC Shipping Fund created 115
in Section 27-71-29. 116
(7) The department shall charge manufacturers a bailment fee 117
of One Dollar and Fifty Cents ($1.50) per case of alcoholic 118
beverages stored in the warehouse, to be deposited to the credit 119
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ST: Alcohol taxes, markups and other charges;
exempt up to 10 cases of wine donated annually
by a permittee to nonprofits.
of the bond sinking fund created in Section 7(3) of Chapter 483, 120
Laws of 2022. 121
(8) Any taxes, markups or charges imposed in this section 122
shall not be imposed on wine donated by a permittee to a nonprofit 123
organization that is exempt from federal income taxation under 124
Section 501(c)(3) of the Internal Revenue Code and is registered 125
with the Mississippi Secretary of State. No more than ten (10) 126
cases of wine per year may be exempt from such taxes, markups and 127
charges. The department may promulgate rules and regulations for 128
administering this subsection. 129
SECTION 3. This act shall take effect and be in force from 130
and after July 1, 2026. 131