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 LIQUOR MARKUP

LEGAL CITATION:
M.C.L. 436.1233; 1998 PA 58.
YEAR ADOPTED: 1933. The former statute (1933 PA 8 (Ex. Session)) was repealed and replaced by 1998 PA 58.
BASIS OF TAX: State gross sales minus cost of goods from sale and distribution of alcoholic liquor.
MEASURE OF TAX (BASE): Wholesale price of liquor.
RATE: Uniform prices are established by the Liquor Control Commission that will return a gross profit of at least 51% and not more than 65%. Currently, the full 65% markup from cost is applied to set the retail price of the liquor. A discount of 17% is deducted from the price to establish the cost of the liquor for retail sales outlets.
ADMINISTRATION: Michigan Department of Labor and Economic Growth, Liquor Control Commission.
REPORT AND PAYMENT: Subject to general business practices regarding the wholesaling of the merchandise and remittance of the State's gross profit.
DISPOSITION: General Fund.
2004-05 COLLECTIONS:

 $185,562,950
Liquor Markup Law Changes

Historic Michigan Liquor Markup Tax Revenues

A 1933 PA 8 (ES) Liquor Markup Tax established with a 45% markup rate effective January 1, 1934.
B 1937 -- Increased markup rate to 55% effective August 1937.
C 1940 -- Decreased markup rate to 50% effective July 1940.
D 1941 -- Decreased markup rate to 46% effective October 1941.
E 1945 PA 33 Discount rate established at 10% for off-premise purchases and 15% for on-premise purchases effective April 30, 1945.
F 1947 PA 350 Discount rate decreased to 12.5% for on-premise purchases effective July 3, 1947.
G 1952 -- Decreased markup rate to 44% effective July 1952.
H 1966 -- Increased markup rate to 46% effective March 1966.
I 1967 PA 90 Increased the discount rate for off-premise purchases to 11.5% effective February 26, 1967.
J 1975 -- Increased markup rate to 48% and increased the discount rates to 15% for both off-premise purchases and on-premise purchases effective January, 1975.
K 1980 -- Increased markup rate to 51% and increased the discount rates to 17% for both off-premise and on-premise purchases effective October 1980.
L 1983 -- Increased markup rate to 65% effective May 1983.

 

 

 

 

 

 

Last Updated January 10, 2007