Posted on Sun, Apr. 03, 2005

THIS WEEK IN LEGISLATURE
Free-pour bill reaches hurdle
Objections mean only majority vote can force debate

The Sun News

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.


Contact ZANE WILSON at 520-0397 or zwilson@thesunnews.com.




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