Liquor plan would
help bars, hurt stores
By JEFF
STENSLAND Staff
Writer
Customers would pay more for spirits at South Carolina’s liquor
stores — but less at bars and restaurants — under a plan approved by
lawmakers Tuesday.
The tax shift is a result of changes that would allow bars and
restaurants to use free-pour instead of minibottles.
South Carolina is the only state that forbids free-pour and
mandates the use of minibottles.
Under the Senate committee plan, liquor wholesalers would be
taxed an additional 56 cents per liter. That cost would be passed
along to retail customers.
But for bars that now are forced to serve higher-taxed
minibottles, the per-liter tax would mean they could serve free-pour
drinks for less.
“For bars and restaurants, this is the best thing (lawmakers)
could have done,” said Tom Sponseller, president of the Hospitality
Association of South Carolina.
Lawmakers’ goals is to ensure that the flow of $23.5 million in
annual revenue from liquor sales would not be disrupted by the
change to free-pour.
“This is the cleanest, most simple way to do it,” said Sen. Phil
Leventis, D-Sumter. “Liquor is a luxury that most people are willing
to pay a tax that’s a little out of proportion for.”
The tax question is one of several unresolved issues facing
legislators after voters in November approved a referendum to allow
free-pour liquor.
Several committees in the House and Senate have been studying
ways to make the transition. Lawmakers expect to hash out
differences and pass final legislation this spring.
Also Tuesday, a House committee heard testimony about who should
be allowed to deliver liquor.
Under current law, 58 “class B” retailers are the only ones
allowed to sell liquor directly to bars and restaurants, but they
are forbidden to deliver it.
The Senate passed a plan that would keep liquor sales limited to
class B outlets, but would allow for delivery to bars and
restaurants.
Bill Dukes, owner of the Blue Marlin, Willy’s and Willy’s Foxfire
Grill restaurants, said the Senate doesn’t go far enough.
“I’m right back where I started,” he said.
Dukes and others in the hospitality industry want to be able to
buy directly from wholesalers, who can offer lower prices.
David Lance, co-owner of Harper’s restaurant in Five Points, said
he’s anxious to see something finally pass.
“They’ve been talking about this since 1990. It was one of those
issues I thought would never be resolved, so we’re excited about
it.”
Staff writer Aaron Gould Sheinin contributed to this report.
Reach Stensland at (803) 771-8358 or jstensland@thestate.com |