Posted on Wed, Mar. 30, 2005


Liquor plan would help bars, hurt stores


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





© 2005 The State and wire service sources. All Rights Reserved.
http://www.thestate.com