MississippiHB 12842025 Regular SessionHouseWALLET

Mississippi Native Spirit Law; rename and revise various provisions.

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Bill Overview

Analyzed Economic Effects

11 provisions identified: 5 benefits, 2 costs, 4 mixed.

Distillers face taxes with limited exemptions

Native and craft spirit producers owe $300 per 1,000 gallons, or part thereof, produced at each location. The annual Class 5 craft producer license tax is capped at $3,000. Covered cases sold also carry a gallonage excise tax. Exemptions cover spirits made for export and sale outside Mississippi, sales to the Department, and free tasting-room samples up to two ounces. Producers must report covered sales and production monthly and pay taxes due with each report.

Patrons can carry drinks within districts

Patrons at specified permitted locations can carry open drinks outside and consume them within established leisure and recreation districts. Added permit types include temporary theatre, distillery retailer, native spirit retailer, and direct wine shipper permits. The licensed location must be inside the district, and patrons must stay within its boundaries.

More operating rights for Mississippi distilleries

Beginning July 1, 2025, the law authorizes native and craft spirit production and sales within and outside Mississippi. Craft spirits must be made wholly or partly by a Mississippi-based distillery established under state law. Production includes importing, bottling, storing, distributing, and selling. These activities are allowed throughout counties allowing alcohol sales, subject to other laws, state rules, and local zoning. Native and craft producer and retailer permit holders can keep operating and renew permits after a local vote restores prohibition.

More tasting room sales for distilleries

Native spirit retailers need a Class 4 manufacturer permit; craft spirit retailers need a Class 5 manufacturer permit. They can sell drinks and sealed bottles at distilleries and tasting rooms within five miles. Each distillery can also operate one permanent satellite tasting room elsewhere in Mississippi where alcohol sales are allowed. Both retailer types can sell other suppliers' drinks for on-site use; craft retailers must follow local on-premises sales hours. Out-of-state spirit sales must go to legally authorized buyers.

Retailers gain spirit pickup and samples

The law allows exceptions to the requirement that alcohol businesses buy through the Department of Revenue. These exceptions cover purchases authorized by Sections 1–9 of Senate Bill 2145 from 2025. Department rules can let retailers pick up Department-sold or authorized spirits at distilleries or tasting rooms instead of using its warehouse. The Department can also authorize craft manufacturers to provide brand samples to craft retailers that have never bought that brand. Samples are limited to 500 milliliters per brand for each retailer.

Venues and nonprofit theatres expand drinks

Permitted event venues can sell native wines, native spirits, and craft spirits for on-site drinking during legal hours. An unrelated, nonaffiliated caterer must serve at least three entrees at the event. Nonprofit theatres exempt under tax code Section 501(c)(3) or (4) can sell these drinks with temporary theatre permits. The nonprofit must own or operate a theatre featuring plays or other theatrical productions. Theatre sales must be to patrons during performances, with drinks consumed on the permitted premises.

Alcohol businesses face invoice reporting duties

Beginning July 1, 2025, sales reporting expressly covers manufacturers, including native wine, native spirit, and craft spirit producers. For Mississippi sales, sellers must send the Department of Revenue a detailed invoice copy at the time of sale. People transporting alcohol between Mississippi locations must provide a bill of lading or receipt within five days after delivery. A conviction for noncompliance carries a $50 fine per offense. Direct wine shipper permit holders follow their separate Department-prescribed reporting process.

Distilleries face permits and state oversight

Every Mississippi native or craft distillery must apply for a state permit and register with the Secretary of State. Registration requires business, location, permit, and Mississippi agent-for-service information. The Department of Revenue can set production and sales rules consistent with state and federal law. It can suspend, cancel, or revoke permits for violations, noncompliance, or other sufficient cause. Beginning July 1, 2025, administrative appeals go to the Board of Tax Appeals under the spirits-law process, not the general appeal chapter.

Direct wine shipping adds reporting duties

A direct wine shipper permit allows limited wine sales and shipments directly to Mississippi residents without routing transactions through the alcohol division. The authority follows Sections 1–9 of Senate Bill 2145 from 2025. A qualifying, permitted fulfillment provider can ship wine for a direct wine shipper. Beginning July 1, 2025, direct shippers must report wine sales, shipments, deliveries, and transportation as the Department of Revenue directs. This reporting replaces the general sales-invoice and transportation-document requirements for those permit holders.

Producers gain festival sales until 2026

Festival permits expand to native spirit producers, craft spirit producers, and distilled spirit manufacturers licensed in Mississippi or another state. Holders can sell their own sealed, unopened products for three consecutive days per festival, up from two. Festivals must have at least three vendors; reporting, taxes, fees, surcharges, and local-option requirements still apply. The festival permit authority is repealed beginning July 1, 2026. The festival wine sales exemption also ends that day, restoring the general alcohol sales restriction.

Resort businesses gain access, local limits

Locations listed in items 76–92 of the resort-area definition qualify without a Department of Revenue declaration. In areas listed as 83 and 84, cities can set alcohol facilities' hours, locations, and required meal-revenue shares. A separate exemption removes church, school, kindergarten, and funeral-home distance limits for certain licensed premises in a historic resort district. That district must be on the National Register of Historic Places, in a municipality where Mississippi Highways 1 and 8 intersect.

Sponsors & Cosponsors

Sponsor

Josh Hawkins
Republican • House

Cosponsors

Manly Barton
Republican • House
Lester Carpenter
Republican • House
Clay Deweese
Republican • House
Zachary Grady
Republican • House
Rodney Hall
Republican • House
W.I. Harris
Republican • House
Jeffrey Hulum III
Democratic • House
Justin Keen
Republican • House
Jonathan McMillan
Republican • House
Brent Powell
Republican • House
Shanda Yates
Independent • House

Roll Call Votes

All Roll Calls

Yes: 252 • No: 15

House vote • 3/21/2025

Concurred in Amend From Senate

Yes: 108 • No: 5 • Other: 4

Senate vote • 3/11/2025

Passed As Amended

Yes: 51 • No: 0

House vote • 2/11/2025