Idaho Bills

Amends existing law to revise a provision regarding distribution of revenue.

In 2023, the Idaho Legislature passed SB 1120 – the liquor license reform bill. SB 1120 prohibits the transfer or sale of any liquor license issued after July 1, 2023. Liquor Licenses issued prior to July 1, 2023, may be sold only one time. As part of its funding, the Idaho State Police – Alcohol Beverage Control (ABC) unit, by statute, collects a 10% transfer fee based on the sales price of the license transferred. As intended, the new law ended the practice of financially speculating on a state-issued liquor license. Historically, liquor license transfer fees have been a large percentage of ABC’s dedicated funding. As a result of SB 1120, the 10% transfer fee revenue collected has significantly decreased since passage. The amount ABC has collected since passage of the liquor license reform bill has decreased by 47% leaving a significant shortfall in the agency’s budget. Idaho also applies a beer excise tax. Thirty-three percent (33%) of the tax collected on beer with an alcohol content of 5% or less is dedicated to the Permanent Building Fund, which has no nexus to the beer excise tax. This bill redirects that 33% to the Idaho State Police, with 40% of this amount specifically dedicated to the Alcohol Beverage Control unit.