During his second term, McAlister angered Crump by proposing a state sales tax. Crump's allies in the state house defeated the tax, and he broke off support for McAlister, calling him "our sorriest governor." McAlister angered Crump further when he refused to allow the sale of liquor in Memphis (federal prohibition had ended with the repeal of the 18th Amendment, but state prohibition remained in effect). Realizing he had little chance of winning without Crump's support, McAlister did not seek reelection to a third term.