Liquor prices going up 6 percent at ABC stores

The cost of liquor at state ABC stores will be going up Saturday.

Starting then, a 6 percent sales tax will be added to the purchase of most alcohol sold at Rowan ABC stores and others across the state.

Linda Lowman, Rowan ABC general manager, pointed out that this is the first time sales tax has applied to liquor sales.

She wants to get the word out so customers won’t be surprised at their next visit to the ABC stores.

The addition of the sales tax was part of a package passed by the General Assembly to make up for a serious state budget shortfall.

The six percent sales tax will not be applied to liquor sold to restaurants for mixed beverages.

For the first time, buyers won’t be paying the shelf price.

The price on the ABC store shelf already contains a substantial amount of taxes.

According to state ABC figures, the actual price of liquor from the distiller is less than 30 percent of the sale price.

A federal tax of 23 percent, a state tax of 20 percent and other taxes are added.

In addition, the shelf price includes a 21 percent markup which funds the operations of ABC boards, the state ABC Commission and the State ABC warehouse.

For example, a case of 12 bottles of 80-proof liquor that costs $30.87 from the distiller will be priced at $106.27 at the ABC store. Liquor sold for $2.57 a bottle at the distillery has a retail price of $8.95.

If the liquor is sold to a restaurant for mixed beverages, the price increases to $12.70 per bottle.

Starting Saturday, ABC employees will add an extra 6 percent at the register.

In February, ABC patrons will get a bit of a break. One of the existing taxes already figured into the shelf price will be reduced slightly — 3 percentage points — but the 6 percent sales tax will remain.

Contact Jessie Burchette at jburchette@salisburypost.com  or call 704-797-4254.