Kansas Association
of Beverage Retailers





Division of Taxation's Notice to Retail Liquor Stores regarding Taxation of Cereal Malt Beverage Products

03 Apr 2019 5:46 PM | Anonymous

KABR is asking Governor Kelly to expedite signing HB 2035 which was passed by the Legislature late last week so it can be published in the Kansas Register - triggering its effective date.  HB 2035 establishes the tax rate for cereal malt beverages by a retail liquor store at the 8% enforcement tax rate - equal to the tax paid on other alcoholic beverage products.  This bill also provides for uniform law enforcement under the new Beer Law that become effective April 1.  This bill is basically another trailer bill for 2017 Sub for SB 13 - the Beer Law.  KABR, KWSWA, Division of ABC, Kansas Association of Chiefs of Police, the Kansas Sheriff's Association and the Kansas Peace Officers Association had lobbied for the bill to be final prior to April 1, but there was a delay for House concurrence.  

The Division of Taxation sent a notice Tuesday night telling retail liquor stores to charge sales tax on cereal malt beverage products until this legislation is implemented (on publication in the register). Currently, liquor stores pay enforcement tax on all beer, wine and spirits products. This is an issue for programming point of sale systems and recordkeeping.  This is, of course, evidence that cereal malt beverages have not "gone away" as advertised by the Uncork proponents.

Additionally, any charges filed by a local law enforcement officer and submitted to the Division of Alcoholic Beverage Control since April 1 could be challenged because HB 2035 was not final prior to the April 1 rollout of the Beer Law.

We will let you know as soon as the bill is signed, but in the meantime, liquor stores must collect sales tax on the sale of any 3.2 products (cereal malt beverages).  It may be worthwhile to keep these products off the sales floor until the bill is published in the Kansas Register.     

From: KDOR_ABC Email [mailto:KDOR_ABC.Email@KS.GOV]
Sent: Tuesday, April 02, 2019 4:47 PM
Subject: Division of Taxation's Notice to Retail Liquor Stores regarding Taxation of Cereal Malt Beverage Products




2019 H.B. 2035 amends K.S.A. 2018 Supp. 41-308 to provide that all alcoholic liquor, cereal malt beverage and nonalcoholic malt beverage sold by a holder of a retail license shall be subject to the liquor enforcement tax imposed by K.S.A. 79-4101.  This change is effective April 1, 2019 and upon publication of the act in the Kansas register.  Until such time as such publication occurs, holders of a retail license shall continue to collect retailers’ sales tax on the sale of cereal malt beverage.  On the day of publication of the act, liquor enforcement tax shall be collected on such sales.



Kansas Department of Revenue - Alcoholic Beverage Control

Mailing Address:  Mills Building , PO Box 3506 , Topeka , KS 66601 -3506

Physical Address:  109 SW 9th Street , 5th Floor, Topeka , KS 66612

Phone:  785-296-7015

Fax:  785-296-7185

Email:  KDOR_abc.email@ks.gov

Website: www.ksrevenue.org/abc.html

Facebook:  www.facebook.com/KansasAlcoholicBeverageControl

Kansas Association of Beverage Retailers       P.O. Box 3842, Topeka, KS  66604      Email KABR  

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