Sales of mixed drinks, liquor and beer in Arkansas rose in 2023, as reflected in the increase in the state’s collection of excise taxes on alcoholic beverages.
Excise tax collections for mixed drinks reached $20.88 million last year, a 7% increase over collections in 2022 and a whopping 120% increase over the pandemic year of 2020.
Meanwhile, excise tax collections for liquor totaled $16.63 million in 2023, a 2% gain over 2022 and a 9% increase over 2020.
And excise tax collections for beer were $5.27 million last year, a 3% increase over 2022 and a 9% gain over 2020.
Act 158 allows liquor permit holders to deliver alcoholic beverages directly to the private residence of a consumer aged 21 or older in “wet” counties in Arkansas, and Act 703 allows restaurants with alcoholic beverage permits to deliver to consumers. It also allows restaurants to deliver up to 32 ounces of a mixed drink or to let patrons buy mixed drinks to-go.
But the increase in alcoholic beverage tax collections in Arkansas also likely reflects that people are continuing to return to their favorite restaurants and bars four years after the COVID-19 pandemic shut many of them down. The National Restaurant Association reported last month that sales at eating and drinking places nationwide totaled $95.1 billion on a seasonally adjusted basis in January, the 11th consecutive month of sales growth.
And, of course, inflation — at 3.1% nationwide in January compared to a year ago — is a consideration.
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