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

MISSISSIPPI LEGISLATURE

2026 Regular Session

To: Finance

By: Senator(s) Johnson

Senate Bill 3111

(As Sent to Governor)

AN ACT TO AMEND SECTIONS 27-71-7 AND 27-71-11, MISSISSIPPI
CODE OF 1972, TO EXEMPT FROM ALCOHOL TAXES, MARKUPS AND OTHER CHARGES UP TO 10
CASES OF WINE ANNUALLY THAT ARE DONATED BY A PERMITTEE TO A 501(C)(3) NONPROFIT
ORGANIZATION REGISTERED WITH THE MISSISSIPPI SECRETARY OF STATE; AND FOR
RELATED PURPOSES.

BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1.  Section
27-71-7, Mississippi Code of 1972, is amended as follows:

27-71-7.  (1)  There is
hereby levied and assessed an excise tax upon each case of alcoholic beverages
sold by the department to be collected from each retail licensee at the time of
sale in accordance with the following schedule:

(a)  Distilled spirits................ $ 2.50 per gallon

(b)  Sparkling wine and champagne..... $ 1.00 per gallon

(c)  Other wines, including native wines...............

.............................................. $  .35 per
gallon

(2)  (a)  In addition to the
tax levied by subsection (1) of this section, and in addition to any other
markup collected, the division shall collect a markup of three percent (3%) on
all alcoholic beverages, as defined in Section 67-1-5, Mississippi Code of
1972, which are sold by the division.  The proceeds of the markup shall be
collected by the division from each purchaser at the time of purchase.

(b)  Until June 30,
1987, the revenue derived from this three percent (3%) markup shall be
deposited by the division in the State Treasury to the credit of the
"Alcoholism Treatment and Rehabilitation Fund," a special fund which
is hereby created in the State Treasury, and shall be used by the Division of
Alcohol and Drug Abuse of the State Department of Mental Health and public or
private centers or organizations solely for funding of treatment and
rehabilitation programs for alcoholics and alcohol abusers which are sponsored
by the division or public or private centers or organizations in such amounts
as the Legislature may appropriate to the division for use by the division or
public or private centers or organizations for such programs.  Any tax revenue
in the fund which is not encumbered at the end of the fiscal year shall lapse
to the General Fund.  It is the intent of the Legislature that the State
Department of Mental Health shall continue to seek funds from other sources and
shall use the funds appropriated for the purposes of this section and Section
27-71-29 to match all federal funds which may be available for alcoholism
treatment and rehabilitation.

From and after July 1, 1987,
the revenue derived from this three percent (3%) markup shall be deposited by
the division in the State Treasury to the credit of the "Mental Health
Programs Fund," a special fund which is hereby created in the State
Treasury and shall be used by the State Department of Mental Health for the
service programs of the department.  Any revenue in the "Alcoholism
Treatment and Rehabilitation Fund" which is not encumbered at the end of
Fiscal Year 1987 shall be deposited to the credit of the "Mental Health
Programs Fund."

(3)  There is levied and
assessed upon the holder of a direct wine shipper's permit, a tax in the amount
of fifteen and one-half percent (15.5%) of the sales price of each sale and
shipment of wine made to a resident in this state.  The holder of a direct wine
shipper's permit shall file a monthly report with the department along with a
copy of the invoice for each sale and shipment of wine and remit any taxes due;
however, no report shall be required for months in which no sales or shipments
were made into this state.  The report, together with copies of the invoices
and the payment of all taxes, shall be filed with the department not later than
the twentieth day of the month following the month in which the shipment was
made.  Permittees who fail to timely file and pay taxes as required by this
subsection shall pay a late fee in the amount of Fifty Dollars ($50.00), in
addition to any other penalty authorized by this article.

(4)  Any taxes, markups
and charges imposed in this section shall not be imposed on wine donated by a
permittee to a nonprofit organization that is exempt from federal income
taxation under Section 501(c)(3) of the Internal Revenue Code and is registered
with the Mississippi Secretary of State.  No more than ten (10) cases of wine
per year may be exempt from such taxes, markups and charges.  The department
may promulgate rules and regulations for administering this subsection.

SECTION 2.  Section
27-71-11, Mississippi Code of 1972, is amended as follows:

27-71-11.  (1)  The
department shall from time to time by resolution request the State Bond
Commission to provide sufficient funds required to maintain an adequate
alcoholic beverage inventory.  Said funds shall be provided under the
provisions of Chapter 557, Laws of 1966.

(2)  The department shall
add to the cost of all alcoholic beverages a markup of twenty-seven and one-half
percent (27-1/2%), inclusive of the three percent (3%) markup imposed by
Section 27-71-7(2).

(3)  In addition to other
excise taxes and markups imposed in this section and in Section 27-71-7, the
department shall add to the cost of all alcoholic beverages shipped a charge of
Twenty-five Cents (25¢) per case, to be deposited into the ABC Warehouse
Improvements Fund created in Section 67-1-211(2).  However, any unobligated
amounts above Ten Million Dollars ($10,000,000.00) remaining in the ABC Warehouse
Improvements Fund at the end of a fiscal year shall be transferred to the State
General Fund.

(4)  Notwithstanding the
contract for warehouse and distribution operations under Section 67-1-205, the
department shall remain responsible for purchasing and selling alcoholic
beverages.  The department shall sell alcoholic beverages at uniform prices
throughout the state.  Pricing for all alcoholic beverages shall be set by the
addition of the markup and taxes to the price at which the beverages were
purchased by the department.

(5)  A permittee's order
shall qualify for shipping when it includes the minimum number of cases of
alcoholic beverages as set by the department.  The department shall place
qualifying orders in a queue for shipment in the order in which the orders are
made.  An order of fewer than the minimum number of cases, and special orders,
shall be added to the permittee's next qualified shipment.  The department
shall give sufficient notice of any change in the minimum number of cases for
shipping and shall allow the opportunity for comment.

(6)  The department shall
set a per-case shipping fee to be charged to permittees.  The department shall
adjust the fee to match, as closely as possible, the shipping costs as defined
in Section 67-1-201.  The shipping fee charged under this subsection shall be
deposited to the credit of the ABC Shipping Fund created in Section 27-71-29.

(7)  The department shall
charge manufacturers a bailment fee of One Dollar and Fifty Cents ($1.50) per
case of alcoholic beverages stored in the warehouse, to be deposited to the
credit of the bond sinking fund created in Section 7(3) of Chapter 483, Laws of
2022.

(8)  Any taxes, markups
or charges imposed in this section shall not be imposed on wine donated by a
permittee to a nonprofit organization that is exempt from federal income
taxation under Section 501(c)(3) of the Internal Revenue Code and is registered
with the Mississippi Secretary of State.  No more than ten (10) cases of wine
per year may be exempt from such taxes, markups and charges.  The department
may promulgate rules and regulations for administering this subsection.

SECTION 3.  This act
shall take effect and be in force from and after July 1, 2026.