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HB 736

Alcoholic Beverage Tax - Ready-to-Drink Cocktails

2026 Regular Session Introduced by Eric Ebersole

Maryland bill adjusts tax classification for ready-to-drink cocktails, affecting consumer prices and state alcohol tax revenue through modified tax treatment of pre-mixed drinks.

Hearing 2/17 at 1:00 p.m.
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WeVote Research Nonpartisan
Bill Summary · HB 736

Legislative bill overview

HB 736 proposes to modify Maryland's tax treatment of ready-to-drink (RTD) cocktails, which are pre-mixed alcoholic beverages sold in cans or bottles. The bill appears to create or adjust a specific tax category for these products, distinguishing them from other alcoholic beverages currently taxed under existing frameworks. The exact tax rate change and implementation details would be clarified during the committee hearing scheduled for February 17, 2026.

Why is this important

RTD cocktails represent a growing segment of the alcohol market, and how they're taxed affects both consumer prices and state revenue. Tax treatment can influence market competition between RTD products and traditional spirits, beer, and wine, potentially shifting consumer purchasing patterns. The outcome also impacts beverage manufacturers' pricing strategies and Maryland's tax base from alcohol sales.

Potential points of contention

  • Revenue impact: Unclear whether this increases or decreases state revenue; stakeholders will debate fiscal implications
  • Market fairness: Questions about whether RTD cocktails should be taxed differently than their component spirits or comparable alcoholic beverages, and whether this creates competitive advantages/disadvantages
  • Consumer cost: Changes could increase or decrease prices for RTD cocktail consumers depending on tax direction, raising equity concerns about regressive taxation on certain beverage categories

Compiled from official sources — confirm details with the bill’s official record.

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