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Liquor Control Commission Disperses $67 Million to Local Municipalities Statewide

Media Contact: LARA Communications (517-335-LARA (5272))

September 3, 2020.  The Michigan Liquor Control Commission (MLCC) has announced that in fiscal year 2019, more than $67 million in revenue sharing went back to local communities to support the state’s tourism and convention business, and local efforts toward enforcement of the Liquor Control Code.

“As a destination state, Michigan’s hospitality industry is a major sector of our economy and we’re pleased to support it from revenue collected on the sale of spirits,” said MLCC Chair Pat Gagliardi.  “Along with that, we value our partnership with local law enforcement agencies across the state and their policing efforts, especially enforcement of the Liquor Code to protect public health and safety.”

By law, the MLCC allocates four percent of base price spirits that goes to the Convention Facility Development Fund to support promotion of tourism and convention business and acquisition of convention facilities. This monthly disbursement to counties is proportionate, based on liquor sales by county. In Fiscal Year 2019, the MLCC designated a total of $60.3 million. This is an increase from $57.2 million dispersed in Fiscal Year 2018. 

In addition, MLCC dispersed more than $7.6 million in its April-June 2020 Law Grant Payment to 1,560 municipalities in all five MLCC districts (Escanaba, Gaylord, Grand Rapids, Lansing and Southfield). 

As prescribed by law, MLCC pays 55 percent of its retailer’s license fees and license renewal fees on a quarterly basis to counties, cities, villages or townships in which a full-time police department a full-time ordinance enforcement department is maintained or credited to the sheriff's department of the county in which the licensed premises are located for the specific purpose of enforcing the Liquor Control Code and Administrative Rules. The MLCC dispersed $7.4 million for the similar timeframe for Fiscal Year 2018.

The MLCC oversees the regulation of more than 18,000 retail liquor licensees statewide, including stores, restaurants, hotels, bars and clubs.

In Fiscal Year 2019, the MLCC transferred $248 million to the State’s General Fund, an increase of 17.2 million over the previous fiscal year for appropriation by the Michigan Legislature to support a wide range of state programs.  Over the last decade, the MLCC has transferred $1.9 billion to the State’s General Fund. 

By law, the Commission is the sole wholesaler of all spirit products in the state -- purchasing these products from suppliers and selling them to retailers. All spirit products are marked up 65 percent on the price paid by the Commission. All licensees receive a 17 percent discount off this marked-up price; on-premises licensee receive a 23 percent discount for a year.

For detailed information go to Law Grant Payments.

It is the mission of the MLCC to make alcoholic beverages available for consumption while protecting the consumer and the general public through the regulation of those involved in the importation, sale, consumption, distribution, and delivery of these alcohol products.

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