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Lawmakers were right to let bars and restaurants get rid of
minibottles. The little bottles were a big menace, giving this state
some of the most intoxicating mixed drinks in the nation and
contributing to this state's high fatality rate on the roads.
Most bars moved to larger bottles, using the so-called free-pour
system. But now the state is reporting a drop in its liquor tax
revenue. Collections so far this year total $9.3 million, compared
with $12 million last year. The difference -- $2.7 million -- is
enough to warrant a careful review by state leaders.
The possibility of a dip in revenue was discussed by state
lawmakers at the time the minibottle legislation was discussed, so
it should come as no surprise. It's imperative that state lawmakers
adjust the liquor tax to make sure the state doesn't lose any
revenue due to the shift from the 1.7-ounce minibottles to larger
bottles.
The state Revenue Department said the situation may be
self-correcting. Tax revenues dip anytime there's a change in tax
law, as filers get accustomed to the new system.
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State leaders should closely monitor liquor tax revenues. The
situation may indeed correct itself. If it doesn't, Gov. Sanford and
state lawmakers should adjust liquor taxes accordingly. |