Alcohol tax amendments may be unconstitutional

(The Center Square) – Illinois government officials have proposed amending the way the state taxes alcohol, but the changes may not be constitutional.

The 2026 Illinois Register Rules of Governmental Agencies is seeking to update definitions of the various categories that differentiate types of alcohol.

Jacob Macumber-Rosin, excise tax policy analyst with the Tax Foundation, said the proposed changes are intended to align the administrative code with current statutes in the Liquor Control Act.

“The Department of Revenue has collected taxes using a rate that is different from what is in the administrative code and different from what is in the statutes, and they’re now attempting to update the administrative code to align the administrative code to the statute,” Macumber-Rosin told The Center Square.

Macumber-Rosin said Illinois’ alcohol taxes have been messy since a 1988 state Supreme Court ruling struck down the tax scheme at the time. He said the court stressed the need for the legislature to establish tax rat...