Senate panel
approves new liquor sales bill
JIM
DAVENPORT Associated
Press
COLUMBIA, S.C. - Bars and restaurants are a
step closer to pouring liquor from big bottles instead of
minibottles after a Senate subcommittee approved new alcohol
legislation Thursday.
Voters overwhelming approved doing away with South Carolina's
unique system of pouring drinks in a November referendum. But some
don't expect the change to come before January - meaning the summer
tourist and fall golf seasons will come and go again with
minibottles in the mix.
The change may save consumers a few cents here and there. The
bill the Senate Judiciary Committee will take up Tuesday says a 25
cent-per-minibottle tax will be replaced with a five percent tax on
each drink. Exotic drinks frequently call for several minibottles of
different liquor.
"The state has to look at a way to keep the money," said Tom
Sponseller, president of the Hospitality Association of South
Carolina. The per-drink tax leaves fewer opportunities to cheat the
system, he said. The state will continue to collect the more than
$18 million it does now in drink taxes.
And bars and restaurants likely will save money and hassles, too.
The legislation allows them to take delivery from suppliers instead
of dispatching their bar and wait staff to pick up boxes of
minibottles.
"Under current law, 3,000 restaurant employees have to drive to
one of 58 liquor stores in the state to pick up and buy their
product," Sponseller said. Delivery will save time and labor costs
while cutting down on the liability that comes with so many people
driving personal cars back and forth to liquor stores, Sponseller
said.
Who supplies bars and restaurants has been the legislation's
biggest obstacle. The 58 retailers now federally licensed to sell
minibottles to bars and restaurants feared they'd be put out of
business if the companies they buy from were allowed to compete for
those customers.
"If you had someone trying to legislate you out of business, you
would stand up, too," said John Kelsey of the South Carolina
Wholesale Liquor Distributors Association.
The larger operations have exclusive rights with distillers to
sell specific brands of liquor. "They have total control of each
brand in the marketplace," Kelsey said.
But big liquor distributors and Kelsey's groups should be able to
deliver to the hospitality industry, said Fred Allen, a lobbyist for
Columbia-based Southern Wine and Spirits, which has operations
around the state.
"Our customers want us to," Allen said. Larger concerns already
have the ability to make deliveries, he said.
More distributors would spur competition, he said. "I would think
that the hospitality industry wants a chance to see more competition
so they have a chance to lower their costs," Allen said.
Sponseller says his members wanted both groups to be able to
deliver and compete for business. But he'd rather have the bill
clear the Legislature than have that detail slow it down.
"If that's what it takes to get this law passed, we can live with
it," Sponseller said.
And the sooner, the better, he said.
Companies that want to help bars and restaurants make the change
to free-pour liquor now are having to wait to see what the
Legislature passes, Sponseller says.
A House subcommittee also began working on a version of the
legislation Thursday. And it could take a month or more for the
House and Senate to agree on the bill's final language.
After the legislation crosses Gov. Mark Sanford's desk, it will
take time to implement. For instance, the state Revenue Department
needs about three months to set up a system to collect a per-drink
sales tax, agency spokesman Danny Brazell says.
While the Hospitality Association hoped the legislation would
take effect in July, it's likely that's going to be pushed back to
January, Sponseller said.
"We're going to miss a whole summer season. We're going to miss
the fall golf season," Sponseller
says. |