Assembly Bill 375 FAQs
Table of Contents
What is Assembly Bill 375?
Assembly Bill 375 authorizes certain covered food establishments to sell alcoholic beverages in containers sealed by the covered food establishment for off-premises consumption, either directly to consumers or through a delivery support service acting on the establishment’s behalf.
When did Assembly Bill 375 become effective?
Assembly Bill 375 became effective October 1, 2025.
Can all food establishments sell alcoholic beverages in containers sealed by the establishment for off-premises consumption?
No. The law applies only to covered food establishments and only in localities where the required local ordinance has been adopted.
What is the definition of a “food establishment”?
A “food establishment” generally means any place, building, property, vehicle, or vessel where food for people is:
- Made or prepared;
- Sold or offered for sale;
- Displayed for sale; or
- Served to the public.
The exceptions are: Certain private homes, private clubs, interstate carriers, occasional nonprofit food activities, and businesses or facilities that are specifically regulated under other laws—such as certain slaughterhouses, dairy facilities, egg facilities, cottage food operations, craft food operations, and farms hosting farm-to-fork events.
What must happen before a covered food establishment can make these sales?
The board of county commissioners or the governing body of the incorporated city where the sale will occur must adopt an ordinance permitting covered food establishments to sell alcoholic beverages in containers sealed by the covered food establishment for off-premises consumption.
Does the county or city have to notify the Department of Taxation?
Yes. After the required ordinance is adopted, the county or city must notify the Department of Taxation.
Is there a surcharge on these alcoholic beverage sales?
Yes. A $0.50 surcharge applies to the retail sale of each single serving of an alcoholic beverage sold in a container sealed by a covered food establishment located in a locality that has adopted the required ordinance for off-premises consumption.
What is considered a “single serving of an alcoholic beverage”?
A “single serving of an alcoholic beverage” means the volume of an individual alcoholic beverage as established by the covered food establishment’s menu, recipe, or practice when making the sale to a consumer.
How does the $0.50 surcharge apply if a sealed container includes multiple servings?
The $0.50 surcharge applies to each serving contained in the sealed container.
For example, if a covered food establishment sells a sealed container containing three servings of an alcoholic beverage, the surcharge would be $1.50 ($0.50 × 3 servings).
Who is responsible for charging and collecting the surcharge?
The surcharge must be charged and collected by the covered food establishment or the delivery support service acting on the establishment’s behalf.
Who receives the surcharge?
The surcharge must be remitted to the Department of Taxation.
How is the surcharge reported and remitted?
The surcharge must be reported and remitted on Schedule B with the establishments or delivery support service’s monthly or quarterly Combined Sales and Use Tax Return.
When does the $0.50 surcharge apply?
The surcharge applies when all applicable conditions are met:
- The seller is a covered food establishment
- The alcoholic beverage is sold at retail in a container sealed by the covered food establishment for off premises consumption. The covered food establishment is located in a locality that has adopted the required ordinance. The sale is subject to the provisions of Assembly Bill 375.
Does the surcharge apply once per sealed container or once per serving?
The surcharge applies per single serving, not simply per container. If a sealed container contains multiple servings, the $0.50 surcharge must be collected for each serving in the container.
Are cans and bottles of alcoholic beverages sealed by the manufacturer for off-premises consumption subject to the surcharge?
No. If the alcoholic beverage is sealed by the manufacturer, and the manufacturer is not the covered food establishment, the to-go or delivery beverage is not subject to the surcharge. However, if the covered food establishment is owned and operated by the manufacturer, the beverage would be subject to the surcharge.
Note: FAQs are for general guidance only. For written advice as it relates to your business, request an advisory opinion from the Department.