AB-27 – Summary of Legislative Changes
What businesses need to know about tax, licensing, and advertising changes
Maryland passed several laws in 2000 that affect how alcoholic beverages are taxed, sold, and promoted, and this guidance explains the key changes and what businesses must do to comply.
What you need to know
- Cider is now classified as a malt beverage
- Maryland wineries have expanded sales and event permissions
- Advertising value limits have increased for certain signs
- Most changes take effect October 1, 2000
Who This Applies To
This guidance applies to:
- Non-resident dealers
- Wholesalers
- Wineries
- Retail licensees
Senate Bill 757 – Cider Reclassification
What Changed
Cider is now classified as a malt beverage instead of wine.
Key Impacts
- Tax reduced to 9¢ per gallon (previously 40¢)
- Must follow beer franchise laws
- Subject to malt beverage trade practice and advertising rules
New Requirements
Suppliers must:
- Appoint wholesalers by product and territory
- File required franchise forms
- Remove cider from wine price filings
Inventory Transition
Wholesalers must:
- Pay a one-time tax on cider inventory held as of October 1, 2000
House Bill 414 – Maryland Winery Privileges
What Changed
Maryland wineries now have expanded privileges.
New Allowances
- Sell wine by the glass at the winery
- Conduct promotional activities at retail locations (with conditions)
- Obtain a Winery Special Event Permit
Special Event Permit Details
- Cost: $25
- Duration: Up to 3 consecutive days
- Limit: 12 permits per year
- Only one permit per jurisdiction at a time
House Bill 513 – Advertising Sign Value
What Changed
- Value limit for supplier-provided signs increased:
- From $50 to $150
Important Distinction
- Wholesaler-provided signs remain limited to $50
Effective Date
- Most changes take effect: October 1, 2000
What This Means for Businesses
Businesses should:
- Review product classifications (especially cider)
- Update tax and reporting processes
- Take advantage of new winery sales opportunities
- Ensure advertising materials meet updated limits
Important Notes
- These changes affect multiple areas of compliance
- Some changes require immediate operational updates
- Businesses should review all applicable provisions
Need Help?
For questions about legislative changes, contact the ATCC Legal and Legislative Division: 443-300-6990