Bill reinstates cocktails to-go, lowers taxes on spirits ready-to-drink cocktails and allows holiday sales
Today, the North Carolina Senate passed SB 527, a bill that contains a number of consumer-friendly measures including lowering the tax rate for spirits ready-to-drink cocktails (RTDs), allowing cocktails to-go and delivery of mixed beverages, and permitting holiday sales.
The bill now heads to Governor Roy Cooper for his signature.
“North Carolina spirits consumers are one step closer to enjoying increased convenience with the passage of SB 527,” said Andy Deloney, Distilled Spirits Council of the United States senior vice president and head of state public policy. “Lowering the tax rate for spirits ready-to-drink cocktails, allowing cocktails to-go and permitting holiday sales are all measures that will benefit local hospitality businesses and the consumers they serve. Many states already have these market modernizations, and it’s time North Carolinians and the tourists that visit are able to enjoy the same. We urge Governor Cooper to sign this consumer- and business-friendly measure into law.”
Spirits-based RTDs
Despite many spirits RTDs having the same or lower alcohol-by-volume (ABV) than their beer- and wine-based counterparts, they are currently taxed at a much higher rate. SB 527 defines a “pre-mixed cocktail” and sets a maximum ABV of 13%. It exempts these low-ABV products from the state’s mixed beverage tax of $20 per four liters that is paid by the on-premise “mixed beverage permit” holders.
Cocktails To-Go
SB 527 authorizes cocktails to-go and delivery by mixed beverage permittees or delivery service permittees. Cocktails to-go orders must be made with a food purchase and placed in tamper-evident containers. Current law does not authorize cocktails to-go as a previous, temporary cocktails to-go measure sunset in June 2021.
Since the beginning of the pandemic, 28 states and the District of Columbia have enacted laws to permanently allow cocktails to-go.
Holiday Sales
SB 527 authorizes local ABC stores to sell on New Year’s Day, July 4 and Labor Day.
