Legislative Update

Virginia ABC-Related Legislation Effective July 1, 2026. 

Store Tastings and Products: HB 385, which will go into effect July 1, 2026, will allow Virginia ABC staff to conduct tastings as part of organized tasting events at our stores. Prior to this legislation, only suppliers could conduct tastings at our stores. In addition, HB 385 clarifies existing law that allows Virginia ABC to sell products that are used in connection with distilled spirits beyond simply garnishes or items approved by the Virginia Tourism Corporation.

Distilleries Selling Spirits for On-premises Consumption: SB 424, which will go into effect July 1, 2026, doubles the volume of spirits a distillery - which sells spirits as an agent of Virginia ABC - may sell and serve to a customer. The approved amount increased from three to six ounces of spirits per customer per day for consumption on the premises. Distilleries making on-premises spirits sales will be required to have food reasonably available for patrons, although such food could come from food trucks or the patrons themselves.

MBAR Ratio Requirements Modified: HB 975, which will go into effect July 1, 2026, leaves in place the general contours of the MBAR (Mixed Beverage Annual Review) Ratio, but mixed beverage restaurants selling significant amounts of food and smaller restaurants will be subjected to a less onerous MBAR Ratio. Mixed beverage restaurants selling at least $48,000 of food each month will not be subject to the MBAR Ratio, and mixed beverage restaurants selling at least $25,000 but less than $48,000 of food each month and certain low-occupancy restaurants will be subject to a reduced 30% MBAR Ratio. All other mixed beverage restaurants will remain subject to the current 45% MBAR Ratio.

Late Tax Report Penalties Limited: SB 788 places limitations on penalties for late filings. The bill also requires Virginia ABC to implement an online system for filing wholesale wine tax reports, though this requirement does not go into effect until Jan. 1, 2027.