How ABC Serves Alabama

Where does the money go?

For each retail dollar spent on the shelf price of a bottle of liquor in an ABC State Store, there is a 6% Sales Tax added. Funds from this sale are distributed to several different accounts. This in turn reduces the tax burden on the citizens of Alabama in general; providing dollars to the State General Fund, social & medical programs through the Department of Human Resources and Department of Mental Health, education, local budgets, tax administration and regulation, and statewide law enforcement.

For each $1.00 of a purchase plus $0.06 Sales Tax, funds are distributed as follows:

  • Cost of Product - $0.49
  • State General Fund (GF) - $0.12 *
  • Department of Mental Health (DMH) – $0.09 *
  • Department of Human Resources (DHR) - $0.11 *
  • ABC - $0.19 **
  • Department of Revenue (DOR) - $0.041
  • City - $0.01425
  • County - $0.00475

* Funds are reduced by TVA Supplemental Distribution to Non-Served Dry Counties as required by Act 2010-135.

** ABC funds not spent for operations each year are distributed to the funds listed above as required by state law. (More than $3.5 Million for FY 2010)