Minibottle proposal would restrict 1-liter bottles

COLUMBIA - Liquor store customers would not be able to get 1-liter bottles because they would be reserved for bar and restaurant free-pouring under a proposal from the senator who has been filibustering bills ending the minibottle requirement.

Sen. Phil Leventis, D-Sumter, said those bottles would be taxed at the distributor level, the way minibottles are currently taxed. Leventis says he does not trust that the bill's plan to collect a 5 percent cocktail tax on free-pour drinks will ensure the state will continue to get the $22 million it collects in minibottle taxes.

But other senators and the retail liquor industry are not happy with the proposal. Lobbyists for liquor companies said they don't want to have to take any size of bottle off the shelves.

Others said debate Thursday showed that Leventis' real intent is to preserve the "cash float" the four distributors of minibottles get between the time they collect the taxes for the state from wholesale dealers and the time they turn the money over to the state.

The question is, "who's going to get the float," said Sen. Greg Ryberg, R-Aiken.

Sen. Bill Mescher, R-Pinopolis, agreed. He said taxing 1-liter bottles at the distribution point preserves a special money prize for a small group, and "I don't like that."

Backers of the bill as it is say Leventis, a beer distributor, is standing in the way of the change for friends in the industry. But Leventis said that is not true. He wants to keep the system the way it is because it has worked well for 30 years and changing it is risky to the treasury, he said.

If liquor retailers don't want to give up the 1-liter size, maybe some other size will work better for them, he said.

Leventis was supposed to propose an amendment to the bill in writing, but the staff did not get it prepared in time for Thursday's debate.

During the debate, Leventis said the state should not be discussing the issue because there is no need to change, even if South Carolina is the only state left that requires bars to use the 1.7-ounce minibottles.

But because his amendment was not ready, he agreed to let the bill receive the second of three readings. He will still hold the floor when the issue comes up next week.