Salt Lake City, UT – Each year, the Utah State Legislature convenes for their session from January to March. During that time, they develop and vote on the alcohol omnibus bill, which is a single bill that packages together several pieces of alcohol legislation that become Utah alcohol laws. Here are some of the highlights from the recent updates to Utah’s alcohol laws. These highlights become effective May 1, 2024, except where specifically noted.
Increase License Quotas (effective July 1, 2024)
Increase the number of bar and full-service restaurant licenses available per population.
Full-Service Restaurant Licenses
Today the calculation is 1 restaurant license for 4,467 people. That number gradually increases over seven years to be 1 license for 3,167 people.
Bar Establishment Licenses
Today the calculation is 1 bar license for 10,200 people. That number gradually increases over seven years to be 1 license for 7,264 people.
Licensees Can Sell Pre-Mixed Cocktails in the Original Containers
Often referred to as canned cocktails can now be sold at bars, full-service restaurants, and other eligible licensed establishments. Products must be sold in the original sealed containers and must not exceed 12 ounces, contain no more than 10% alcohol by volume (ABV), and meet label requirements. Only establishments licensed to sell spirituous liquor are allowed to sell pre-mixed cocktails under this change in law.
Alcoholic Beverage Services Commission Must Issue Licenses if the Applicant Meets all Requirements
The Alcoholic Beverage Services (ABS) Commission must issue retail licenses, including through a conditional license, if the applicant satisfies the requirements to operate under state law. The amendment reverses the ABS Commission’s long standing practice of waiting to assign bar and, more recently, full-service restaurant licenses, until the applicant can prove its readiness to open and operate.
Prorate New License Fee Based on Date it is Issued
New alcohol license holders (on-premise retail licenses only) will not pay a full initial license fee and instead the cost will be prorated, determined by the date the new license is issued and the license type expiration date.
Licensed Hotel and Resort Customers Can Walk with Alcoholic Beverage
Customers at licensed hotels and resorts can self-transport an alcoholic beverage in designated and approved areas throughout the hotel if the beverage is in an approved container.
Establishes “Place of Last Drink” Program
A program under the Utah Department of Public Safety in which, during a traffic stop, law enforcement establishes the last location that an individual drank an alcoholic beverage.
Beer Tax Increase
The Utah Tax Commission will collect an increased beer tax from brewing companies. The tax increases $1 incrementally over the next four years, from $13.10 per beer keg to $14.10 in 2028.
Increase the State Markup
Increase the current 88% markup on liquor, wine, and flavored malt beverages, to 88.5%. For customers, the price increase varies from no increase, if a product vendor absorbs the .5% increase, to about 20 cents per bottle on the high-end.
Reduce Type 5 Package Agency Fees
Total fees collected by the DABS from type 5 package agencies reduces from 15.875% to 15.295%.
Type 5 package agencies are local brewers, distillers, wine and cider makers that are licensed to sell their own products from their manufacturing location. Many of their products are also sold in state liquor stores and grocery and convenience stores.
The DABS administrative fee paid by type 5 package agencies is reduced from 5% to 3%. The reduced administrative fee, combined with additional fees the DABS is required by law to collect for other state programs, reduces the total collected from 15.875% to 15.295%.
Liquor Stores and Package Agencies Cannot Sell Products Exceeding 80% ABV
State liquor stores and package agencies are prohibited from selling products that exceed 80% alcohol by volume (ABV). (Currently only applies to an Everclear product.)
Liquor Store Customers Can Donate Towards Treatment Services
State liquor stores provide an option for customers to roundup their purchase to the nearest dollar as a donation to the Pamela Atkinson Trust Fund. The roundup donation option is still under development and will launch at state liquor stores in the coming months.
Prohibits the Sale of Frozen Alcohol Products at Off-Premise Retail
State liquor stores and all off-premise licensees cannot sell frozen alcohol products such as popsicles.
##
- Gov. Cox and advocates celebrate achievements reducing underage drinking, set sights on 2025 during Parents Empowered Month
- New Special Selections Available Now
- Annual statewide donation drive at Utah liquor stores for 2024-2025
- New appointment to the Utah Alcoholic Beverage Services Commission
- Governor appoints new chair to the Alcoholic Beverage Services Commission
