ABC Commission to Discuss Fee Increase
The Alabama Alcoholic Beverage Control (ABC) Commission is meeting today to reconsider an increase in the central warehouse deposit fee.
One of the main topics on the agenda is the potential “Consideration of raising central warehouse storage fees.” This increase aims to help cover the expenses related to a new $98 million warehouse in Montgomery, as stated by the agency.
Last month, the board postponed voting on this increase and is set to revisit the issue today.
According to suggestions, the bailment fee that liquor suppliers currently pay, which is 72 cents per case while their products are stored in ABC warehouses, is expected to increase to a maximum of $1.50 per case by 2028 through three phased increments.
State Sen. Chris Elliott (R-Josephine) voiced his criticism of the proposal, labeling it as a “reactive” measure and an “additional revenue grab.” He argued that this contradicts what the board had communicated to lawmakers when they sought approval for the warehouse project.
“If the Legislature had said we needed to increase fees, we never would have approved it,” Elliott remarked.
He suggested that these changes are being made quietly and that the adjustments could hurt consumers. Elliott, who is known for holding ABC accountable, urged the board to provide documentation and preliminary testimonies to show that the proposed rate increases were disclosed to lawmakers prior to the warehouse approval.
“This is a significant increase, and it’s not authorized by Congress. Congress regulates that through rulemaking. This is bail money instead of taxes that Congress is collecting,” he said.
“This isn’t something that Congress has endorsed; rather, it’s a decision made independently through their rule-making powers to compensate for increased profits from new buildings. I’d like to know where they disclosed this in their reports or documents to Congress before seeking approval,” he commented.
Elliott also found the tactic somewhat unclear. “Most people wouldn’t really understand what bail is,” he noted, expressing concern that any price increases would ultimately be passed on to consumers.
In a briefing conducted in late August, ABC executives informed lawmakers that while the new warehouses could result in slightly reduced distributions to the state general fund in the short term, they anticipate an increase in the long term.
The agency later indicated that they do not expect to generate any profit for the next few years while the funds are allocated for the project.
“This could become a significant concern for my constituents and for the restaurant and hospitality sectors overall,” Elliott cautioned.
“I want the board and its staff to carefully examine what they communicated to Congress and how the funding will be sourced. It’s essential for them to be transparent about their funding plans,” he concluded.
