SB788 to clarify Virginia alcohol excise tax obligations passes with large majorities in House and Senate

A measure introduced by State Sen. Russet Perry to clarify excise tax requirements related to alcohol sales, as well as outline penalties for violations, gained approval from both the House and Senate, according to the Virginia State Senate.

The legislation cleared the House by a 91-6 vote and passed the Senate unanimously, 40-0. It was formally enrolled on March 10, 2026.

Brought as SB788 on Jan. 23, 2026, during the regular session, the bill was officially described by the state legislature as: “Alcoholic beverage control; payment of excise tax on beer, wine coolers, and wine, penalties.”

Below, we provide a summary informed by the actual bill text to offer additional clarity.

The bill amends Virginia’s alcoholic beverage control statute to specify that selling beer, wine coolers or wine to retailers or consumers without remitting the required excise tax is prohibited, and retailers cannot conduct transactions if they suspect taxes have not been paid. Civil penalties are established for manufacturers, bottlers and wholesalers failing to submit tax filings or full payments—including late penalties up to 25% and a 50% penalty for returns that are false or fraudulent. Licensees have 60 days from notification to comply before the Alcoholic Beverage Control Board may suspend or revoke licenses. By Nov. 1, 2026, the Virginia Alcoholic Beverage Control Authority must implement an online system for wholesale wine licensees to file monthly reports and payments on purchases, sales and taxes collected.

House support included 64 Democrats and 27 Republicans, with six Republicans voting against the measure.

In the Senate, the bill was supported by 21 Democrats and 19 Republicans.

The legislation was sponsored by Sen. Russet Perry (Democrat-31st District) with Del. John Chilton McAuliff (Democrat-30th District) as co-sponsor.

Perry is a graduate of George Washington University and obtained a JD from Georgetown University.

Perry, a Democrat, was elected to represent Virginia’s 31st Senate district in 2024, succeeding Barbara Favola.

Virginia’s bill process entails introduction in either the House of Delegates or Senate, referral to committee, panel review and potential amendment, and full chamber votes. Bills approved by both chambers advance to the governor, who may sign, veto, or let the measure become law without signature. The Virginia General Assembly meets annually for a regular session starting on the second Monday in January. Hundreds of bills are introduced each session, but only a portion are enacted.

Information in this article was obtained from the Virginia State Senate. The source data can be found here.