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Monday, September 25    |    Upstate South Carolina News, Sports and Information

Liquor tax revenues
Some adjustments may be needed on tax.

Published: Monday, September 25, 2006 - 6:00 am



What's your view? Click here to add your comment to this story.

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.


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