INCREASE LIQUOR MARK-UP S.B. 1101: FLOOR ANALYSIS
Senate Bill 1101 (as reported by the Committee of the Whole)
Sponsor: Senator Bob Emerson
Committee: Appropriations
CONTENT
The bill would amend the Michigan Liquor Control Code to allow an increase in the maximum gross profit returned to the Michigan Liquor Control Commission from 65% to 74% of the price of alcoholic liquor. The bill would take effect on July 1, 2004.
MCL 436.1233
FISCAL IMPACT
This bill would increase revenue to the Liquor Purchase Revolving Fund, and would increase the amount generated from specific taxes that are deposited into the General Fund (4%), the School Aid Fund (4%), the Conventions Facility Development Fund (4%), and the Commission for substance abuse programming (1.85%). The estimated increase in revenue from the change in the mark-up is estimated to be $39.3 million. Increases in the other funds would be a direct result of the increase in the cost of a bottle of spirits as they are taxes that are applied to the sale price. The total amount generated for each of those funds is estimated to be $1.4 million respectively to the General Fund, the School Aid Fund, and the Conventions Facility Development Fund and $530,250 for the Commission. The total estimated amount that would be deposited into the General Fund would be $40.7 million.
Date Completed: 6-22-04 Fiscal Analyst: Maria Tyszkiewicz
Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. sb1101/0304