New Tax Cap on Liquor Purchases Brings Savings for NC Businesses and Consumers
Effective January 1st, businesses purchasing large volumes of liquors now pay less in taxes, helping to keep menu prices competitive.
Holly Springs, NC, Jan. 12, 2025 — North Carolina consumers and businesses are toasting the latest provision of Senate Bill 527 (Session Law 2024-41), which took effect on January 1, 2025. The new tax cap on spirituous liquor purchases is designed to reduce costs for bulk buyers, such as bars and restaurants while encouraging affordability and innovation in the state’s hospitality industry.
Under the new law, excise taxes on qualifying liquor purchases are capped, making it more economical for establishments to purchase large quantities of spirits for premixed cocktails or popular beverages like margaritas and ready-to-drink canned options. For example, a bar in Holly Springs stocking up on high-demand liquors like vodka or tequila for signature drinks will now pay less in taxes, helping to keep menu prices competitive.
Convenience and New Choices for Consumers
The tax cap complements other consumer-focused reforms in the law, including the permanent allowance for cocktails and wine to go. Initially introduced during the COVID-19 pandemic, this popular feature enables consumers to add items like sangrias or craft cocktails to their takeout orders. For instance, a restaurant in Durham can now offer wine and cocktails in sealed containers alongside its food delivery service.
Expanded ABC Store Offerings
ABC stores across the state have expanded their inventory to include gift cards, branded merchandise, and even barrels for aging spirits. These additions make it easier for consumers to find unique gifts or personalize their home bars. For example, a shopper in Raleigh can now purchase an empty whiskey barrel to decorate their home bar or use it to age homemade cocktails.
Additionally, local ABC boards now have the option to open stores on major holidays, including New Year’s Day, July 4th, and Labor Day. This change allows consumers to restock their party supplies even on previously restricted days.
Opportunities for Craft Beer and Wine Enthusiasts
Craft beer and wine enthusiasts are also seeing new opportunities thanks to the introduction of permits like the Malt Beverage Shop Permit, which allows tastings and events at retail locations. For instance, a beer shop in Asheville can now host sampling events where customers can try locally brewed IPAs or stouts before purchasing.
Meanwhile, community colleges can now sell beer and wine at stadiums and events, bringing a new level of entertainment to game days. Students and alumni at a football game in Wilmington can enjoy a glass of wine or a craft beer while cheering for their team.
Economic Benefits
The law’s reforms, including the tax cap, are expected to enhance the state’s economic environment by making it more attractive for hospitality and beverage businesses to operate in North Carolina. With reduced costs, businesses are anticipated to reinvest savings into expanding their offerings, hiring staff, or enhancing customer experiences.
Critics and Concerns
While widely praised, the law has drawn some criticism from advocacy groups concerned about potential overconsumption or the impact of expanded alcohol access. Despite these concerns, the overall response to the legislation has been positive, particularly for its potential to boost economic activity and meet modern consumer demands.
The latest provision of Senate Bill 527 is just one piece of a broader effort to align North Carolina’s alcohol laws with current trends. From lower taxes to expanded access, the state is raising the bar for businesses and consumers.