Lawmakers question need and purpose of Alabama Beverage Control as costs rise

The Alabama Beverage Control Board, established in 1937 to regulate alcohol sales, is facing criticism from state officials over recent decisions impacting liquor pricing. State Rep. Juandalynn Givan expressed concerns about the board’s role, stating, “I don’t care how you look at it but it is monopolizing a process or the sale of alcohol right here in Alabama for which at some point, that board was created not to do.”

A recent increase in bailment fees from 72 cents to a dollar (which comes out to about a 2 cent increase per bottle) has sparked debate, with Givan and other lawmakers questioning the board’s ability to make fee changes. “Maybe the regulations need to be a little different or at best we need to find out are they authorized by law to be able to make these modifications because this is a serious increase,” she said.

Alabama ranks among the top three states for liquor taxes, prompting concerns that consumers may seek alternatives. “People also drive over to Georgia because you can go to Georgia right next door so you have to look at that and I suspect after a while it will be just like with the lottery ticket. People will start going back to Georgia,” Givan noted.

State Sen. Arthur Orr advocates for Alabama to exit the retail alcohol market, citing competition between about 600 private retailers and 170 state (ABC) stores. “It makes no sense conceptually why we still have this two system operation when it comes to the sale of alcohol we need to get out of the retail sales and then eventually get out of the distribution,” Orr said. He had previously seen estimates for potential state savings around $110 to $120 million annually over a decade if the state exits retail sales.

A price comparison reveals that liquor in Alabama is about 8% more expensive pre-tax than in Georgia, where liquor taxes are approximately 83.4% lower. Orr, who has previously sponsored bills for change in the ABC, suggests legislative action may be delayed until a new governor takes office due to Gov. Kay Ivey’s stance on the ABC.