SB309 Alabama 2024 Session

Updated Feb 23, 2026

Notable

Summary

Primary Sponsor: Steve LivingstonSenator
Republican
Session: Regular Session 2024
Title: Relating to sales taxes; to provide for the additional state sales tax rate in ABC retail stores.
Summary: SB309 changes the additional state sales tax on alcohol sold in ABC stores from a fixed 2% to the local combined county and municipal sales tax rate, effective October 1, 2024.
What This Bill Does
The extra tax on ABC-store alcohol will now equal the local county plus municipal general sales tax rate where the sale happens. The Alcoholic Beverage Control Board collects the tax, which is then handled by the Department of Revenue and redistributed back to local governments with 25% to counties and 75% to municipalities, after deducting handling costs (up to 5% of the amount). The tax applies to the retail price, before other taxes.

Who It Affects
Customers buying alcoholic beverages at ABC stores will pay a tax rate that varies by location, matching the local combined sales tax rate.
Local governments (counties and municipalities) will receive a share of the tax proceeds under the specified distribution rules, with the Department of Revenue managing collection and distribution.

Key Provisions
The additional state sales tax on alcoholic beverages sold in ABC stores shall be equal to the combined county and municipal general sales tax rates assessed in the county and municipality where the transaction occurs.
Revenue collection and distribution: the ABC Board collects the tax; the Department of Revenue redistributes proceeds—25% to counties and 75% to municipalities, less up to 5% for handling costs; effective October 1, 2024.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Alcoholic Beverages & Tobacco; Taxation & Revenue