THIS WEEK IN LEGISLATURE Free-pour bill reaches hurdle Objections mean only majority vote can force
debate By Zane
Wilson The Sun
News
COLUMBIA - The free-pour bill hit a snag
after it came back to the Senate floor radically changed from what
had been discussed for the past five years.
Four senators filed objections to the bill, meaning it can't be
discussed unless it is forced onto the table by a majority vote.
In addition, liquor distillers announced they intend to fight the
change to the bill added by the Senate Finance Committee.
The committee decided that instead of the 5 percent cocktail tax
collected at the point of sale, which had been mostly agreed on for
years, the state's taxes on minibottles should be replaced by
imposing 56 cents more tax on each liter sold to everybody.
In a news release, the Distilled Spirits Council of the United
States said the proposal would "raise taxes on liquor store
customers to pay for repealing the state's minibottle requirement in
restaurants and bars."
David Wojnar, vice president of the council, said, "When the
people of South Carolina voted to eliminate the minibottle, they
were not voting for price hikes. The voters certainly didn't expect
to see the cost of the beverage alcohol they purchase in a store to
increase."
Wojnar said the tax increase amounts to 33 percent for liquor
store customers and a 61 percent drop for restaurateurs "in addition
to other cost savings associated with repealing the minibottle
requirement."
The reasoning of the Finance Committee was that it would be
easier for the state to collect its tax money the way it always
has.
The four or five wholesalers licensed to bring liquor into the
state pay the taxes on it directly to the state Department of
Revenue.
Those taxes currently include 25 cents on each minibottle plus
another rate for each case.
The costs of those taxes are filtered down to the liquor stores
and the customer in the sale price.
The Finance Committee thought that would be easier than
collecting money for each cocktail even though bars already collect
sales taxes on the drinks and in some cases, such as in Horry
County, a special hospitality tax.
The distilled spirits council cited liquor store owner Tim Guest
of Hilton Head Island as an example of about 850 business people who
will be hurt by the bill.
"I'm going to be paying new taxes which will raise my costs and
hurt my business," Guest said in the council's release.
He said liquor-store owners want the hospitality industry to
prosper but not at their expense.
Wojnar said the tax will make South Carolina's liquor taxes $1.24
a gallon higher than North Carolina and $5.60 higher than
Georgia.
The bill had received the second of three readings when it was
sent to the Finance Committee for review. It is unusual to change
bills at that stage.
Sen. Dick Elliott, D-North Myrtle Beach, led the Senate Judiciary
hearings and subcommittee that worked on the bill that included the
cocktail tax recommendation.
He said he thinks some of the objections will be resolved by
Tuesday and he hopes to bring up the bill for final passage.
In the meantime, the House is working on its own version of a
free-pour bill.
A subcommittee held hearings last week and will continue the
hearings about 2:30 p.m. Tuesday in Room 521 of the Blatt House
Office Building.
The time is uncertain because it is listed as 1½ hours after the
House adjourns from its noon session.
Also this week:
The House may debate a bill that would prevent Atlantic Beach's
drawn-out town election process from occurring anywhere again.
Three elected members could not be sworn in because of a protest
that took 16 months to resolve and was found unmerited at each
step.
Current law says elected officials take office when an election
is certified even if it is under protest.
The only exception is city elections. The bill under
consideration would end that exception to prevent unfounded protests
from keeping legitimately elected people out of office.
At 6 p.m. Monday at the Waccamaw Higher Education Center in
Litchfield, Senate hearings on the operations of Santee Cooper
continue.
The hearings are open to anyone.
A Senate subcommittee wants to hear whether people are satisfied
with the utility as it is or would like to see it privatized or be
required to pay more money into state coffers.
A hearing in Conway Thursday drew 80 people, of whom 20
spoke.
A House subcommittee will hold hearings on the Put Parents in
Charge bill that proposes to grant tax credits for private school or
home-school attendance.
The hearing will be at 3 p.m. Wednesday in Room 101 Blatt.
The Senate Finance Committee takes up its version of the state
budget at 3 p.m. Tuesday in Room 105 of the Gressette Senate Office
Building.
Neither the House nor the Senate are expected to see much floor
action Thursday because President Bush will address a joint session
as part of his national tour to drum up support for his Social
Security plan.
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