S.C. GENERAL
ASSEMBLY
Free-pour legislation filed Bill addresses tax but not
distribution By Zane
Wilson The Sun
News
Free-pour-enabling legislation that will set up the alternative
to South Carolina's liquor laws requiring minibottles has gained
priority consideration by lawmakers.
The bill was filed early and assigned to a committee. Last
session, attempts to set up rules for free pour failed.
The enabling legislation outlines the replacement system for bars
and restaurants that choose to use free pour. It is almost the same
as one that passed the House and came close to passing the Senate
last year. While it deals with a new taxing system, it does not
address distribution, which still could cause controversy.
"This year we've got the advantage of that bill having gone
through debate," said Sen. Wes Hayes, R-Rock Hill.
He is co-sponsor of the bill with Sen. Dick Elliott, D-North
Myrtle Beach.
The bill carries through with voters' wishes, after 59 percent in
November chose to have an option to the minibottle system, now used
only in South Carolina.
The main point of the enabling legislation is that it replaces
the 25-cent wholesale tax on minibottles with a 5 percent cocktail
tax collected at the point of sale, along with regular sales tax and
any additional local sales or hospitality taxes.
The cocktail tax is the amount estimated by state economists that
would be needed to replace the $25 million collected on
minibottles.
Last session, the free-pour bill passed the House 92-10 and
passed the Senate Judiciary Committee unanimously, then stalled in
the full Senate in the face of a filibuster.
The new bill does not include the provision the Senate approved
in the spring at the urging of Sen. Phil Leventis, D-Sumter, to end
his filibuster.
That provision limited bars to the use of liter bottles, with a
special tax being applied to them. The liter bottles could not be
sold to anyone else.
Liquor store owners complained the liter is one of their most
popular sizes and they did not like the proposal to take them off
the market.
Hayes said most legislators will not go along with the
liter-bottle requirement because it limits revenue for the state in
the same way the minibottle tax does.
A cocktail tax collection can rise with inflation, he said.
"We've been working with all the parties to come up with a
product that will stand the best chance of passage," Hayes said.
The bill does not address distribution, and Hayes said he thinks
a key element is allowing the liquor stores to deliver. Currently,
bar owners have to travel to one of the 58 stores licensed to sell
minibottles to pick up their supplies.
That is a hardship on some bar owners, such as those in
Georgetown County, where there is no licensed dealer, so they have
to travel to Horry County or Charleston.
Picking up supplies would not be as easy to do with big bottles,
and most other states allow liquor stores to deliver to bars, Hayes
said.
Delivery is something Chet Herman, owner of the bar and
restaurant Mayor's House at Litchfield, would like to see.
That's the way it was done in New York, he said.
But Herman also said he is anxious to switch to free pour,
although some of the smaller independents have said they will stick
with minibottles.
Tom Sponseller, president of the S.C. Hospitality Association,
said he is glad to see enabling legislation get started.
"It's great that a bill's been introduced, and it'll get them
working early," he said.
Distribution could be a controversial issue, Sponseller said. The
original bill allowed owners to buy from any liquor store, but that
clashes with federal law.
The association does not have a position on distribution, he
said.
"We would like to make sure that whatever the system is that it
is the most competitive," he said.
Minibottle-enabling
legislation highlights
11 percent of revenue to go to counties for alcohol
rehabilitation and education programs
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