HB494 Alabama 2019 Session

Summary

Primary Sponsor

Becky Nordgren

Republican

Session

Regular Session 2019

Title

Alcoholic beverages, beer dispensed by brewery or brewpub, privilege or excise tax determined at time beer is allocated for retail sales , Secs, 28-3A-6, 28-4A-4 am'd.

Summary

The bill changes when beer taxes are collected for breweries and brewpubs—from the time beer is dispensed to the time it is allocated for retail sale.

What This Bill Does

It requires the privilege or excise tax on beer to be levied at the time the beer is allocated for retail sale, before it is dispensed for consumption. Manufacturer licensees must collect the beer tax from purchasers and remit it to state and local authorities, effectively passing the tax through to consumers via the sale price. Breweries and brewpubs are covered by these tax timing changes, while existing licensing, reporting, and recordkeeping rules remain in place. The act becomes effective on the first day of the third month after passage and governor approval.

Who It Affects

• Breweries and brewpubs: must collect and remit beer taxes at allocation time and adjust pricing accordingly; maintain required records.
• Consumers and the general public: bear the tax as it is collected at purchase and included in the price of beer.

Key Provisions

• Beer tax is levied when beer is allocated for retail sale, not when it is dispensed.
• Manufacturer licensees collect the beer tax from purchasers and remit it to state and local authorities; the tax is treated as a pass-through to consumers.
• Same tax timing applies to beer sold by brewpubs under 28-4A-4.
• Licensees must keep records and file tax returns as required, with tax duties performed at prescribed times.
• There are existing allowances for tastings, on-site and off-site sales, and nonprofit beer/wine donations under specified limits (unchanged in structure but governed by the new timing).
• Effective date: the act takes effect on the first day of the third month after passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Alcoholic Beverages