Defeated HB 529 Increase excise tax on alcohol by 50%
This bill would have increased YOUR excise tax by $1.25 per gallon on distilled spirits and $.50 per gallon on wine. With 2.34 gallons per case, the increase would have cost restaurants an additional $2.93 per case for distilled spirits and $1.62 per case for wine.
Additionally, the legislation would have increased the ABC mark up from 27.5% to 41.5% or 51%. Based on ABC’s 2009 Annual Report, the Average excise tax per case at 27.5% is $4.14. With the 51% increase, that would mean an additional $2.11 per case.
For a restaurant that orders 10 cases of liquor per month and 4 cases of wine per month, the savings would be $783.54
For those that serve only beer, you too would be affected. the excise tax would increase from $.43 cents per gallon to $.64 per gallon or an increase of a $.21 per case of 12 oz bottles. If you sell keg beer (15.5 gallons) your increase is $3.26 per keg.
For a restaurant that purchases 10 cases of beer per week, your savings is $109.20
For a restaurant that purchases 2 kegs per week your savings is $339.04
AS YOU CAN SEE, IF THIS LEGISLATION HAD PASSED, THE RESTAURANT REFERENCED ABOVE WOULD HAVE HAD A TAX INCREASE OF $1231.78
Your estimated savings :
Annual cases of liquor_______________________x $2.93=_______________________________
Annual cases of wine________________________x $1.62=_______________________________
Total annual cases__________________________x$2.11=________________________________
Total cases of beer_________________________x $.21=_________________________________
Total kegs (15.5 gal.)________________________x$3.26_________________________________
TOTAL LEGISLATIVE SAVINGS_______________________
Defeated HB 1606 Sweetened Beverage Tax
This legislation would have added another excise of tax of $.02 per ounce of finished product. Let’s look at those numbers.
If you by syrup in 5 gallon containers, the tax is computed on the number of finished product ounces created by that syrup. “The tax on syrup sold or offered for sale to a retailer for sale in the State of Mississippi to a consumer shall be Two Dollars and Fifty-six Cents ($2.56) for each gallon of sweetened beverage produced from that syrup, or Two Cents (2¢) per ounce.”
So if 5 gallons of syrup creates 25 gallons (3200 ounces) of finished product, your additional tax on each 5 gallon container would be $64.00.
The same tax rate would apply to bottled or canned sweetened beverages. A case of sweetened soft drinks (144 ounces) would cost an additional $2.88 in excise tax.
If your restaurant purchases three 5 gallon containers of syrup per week, you will pay an additional $9984.00 in taxes.
If your restaurant purchases 10 cases of canned or bottled soft drinks per week, you will pay an additional $1497.60
Your Estimated Savings:
Annual cases of sweetened beverages (12x 12 oz)__________x $2.88=________________________
Annual 5 gallon syrup containers_________________x $64.00=_______________________________
TOTAL LEGISLATIVE SAVINGS_______________________
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