Home - AL Where Does The Money Go

The Alabama ABC Board has generated more than $8.6 billion in net revenues since the Alabama Legislature created it in 1937. These revenues are distributed to support essential state services like education, health and social services, transportation, human resources and law enforcement. Financials listed are unaudited as of November 4, 2022.

DID YOU

KNOW

The general public is not taxed to cover the ABC Board’s expenses. Simply put, consumers of alcoholic beverages pay the agency’s operating expenses.

Alabama’s System is Unique

Alabama is one of 17 states that regulates the sale of beverage alcohol. The ABC Board controls alcoholic beverages through distribution, licensing, regulation, law enforcement and education. Alabama is the only state in the nation that offers citizens a choice between state-run stores and the independent market.

Selection, Variety
& Great Prices

The designation as a control state enables Alabama ABC stores to offer the widest selection and variety of name-brand spirits at affordable prices.

1000 +

SKU's AVAILABLE

Where Does The Money Come From?

Spirits Sales From Our 168 Locations

Spirits Sales To Our 4,370 Restaurant & Retail Partners

Licensing Fees, Beer & Wine Taxes

$702,231,144.67

ANNUAL SALES

$356,130,578.33

ANNUAL TAX REVENUE

$136,800,00

TO THE GENERAL FUND IN 2022

Cumulative New Revenues Generated (in billions of $)

* 2023-2026 estimated based on $360 million in 2023 and
annual growth of 3% each year following

85 Years of Work

Alabama is the only state where privately-run package stores operate alongside state-owned liquor stores. There are 168 ABC stores in the state of Alabama. Eight wholesale-only locations provide service to 4,370 licensees including, but not limited to:

2,842 Restaurants and Bars

716 Private Package Stores

11 Military Outlets

3 Casinos

Where Does The Money Go?

For each dollar spent on a bottle of liquor in an ABC State Store a flat 6% Sales Tax is added. Revenues generated from this sale are distributed to several state and local government accounts. This in turn reduces the tax burden on the citizens of Alabama; providing dollars to the State of Alabama’s 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.

How Large Is 8 Billion?

8 Billion Dollars

Enough money to pave 8,000 miles of road.

8 Billion People

Fill the University of Alabama’s and Auburn University’s football stadiums more than 42,267 times.

8 Billion Hours

Or 912,600 years.

8 Billion Miles

More than 33,400 roundtrips from Earth to the moon.

What is The General Fund?

The General Fund (GF) is one of two major operating funds in the State of Alabama. Revenues credited to the GF are used for the ordinary expenses of the executive, legislative, and judicial branches of state government, for other functions of government, for debt service on certain general obligation bond issues and for capital outlay.

Taxes from more than 40 sources are deposited into the GF, with the largest sources being profits from Alabama Alcoholic Beverage Control Board, insurance company premium taxes, interest on the Alabama Trust Fund and state deposits, oil and gas lease and production taxes, cigarette taxes and ad valorem taxes.

The GF supports state programs such as child development and protection, criminal justice, conservation efforts, economic development, public health and safety, mental health, Medicaid, legislative activities and the court system.

DID YOU

KNOW

When consumers shop in an ABC Store, they aren’t just getting the largest variety and the lowest prices on brand names. They’re also providing jobs for more than 600 Alabama families. Today, we have 404 female employees, which makes up 67% of the workforce at state stores. Additionally, every ABC location, including its 168 stores and administrative building and warehouse spaces, are leased. This helps generate more than $13 million of additional income annually for Alabama’s economy.