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July 31, 2001
Salisbury Post Online; your source for local news and more!

Local News

Rowan ABC Board opposing legislative bills to raise liquor taxes

BY JESSIE BURCHETTE
SALISBURY POST



If some legislators have their way, the price of liquor will be skyrocketing.

The Rowan County Alcoholic Beverage Control Board is suggesting legislators look elsewhere — at beer, wine and cigarettes.

ABC Board members met Monday afternoon and decided to write legislators opposing two bills that would hike taxes. Senate Bill 369 would increase the tax on liquor from 28 to 40 cents per retail dollar. House Bill 1443 would add a 6 percent sales tax.

Board members calculated that the price of a fifth of Jack Daniels would increase from $17.95 to more than $21 if the new taxes are adopted.

Chairman Faye Porter suggested the move to hike liquor taxes is viewed by many as a precursor to an all-out effort to privatize the state-controlled liquor stores.

“I bet a 10-cent tax on cigarettes would wipe out the deficit,” said Board Member Hank Palmer.

Board members and General Manager Linda Lowman talked at length about the high taxes on liquor. For example, liquor is taxed at 28 percent currently, beer is taxed at 5.7 percent and wine at 2.3 percent.

Lowman cited state figures which show annual liquor sales of $358 million, netting $73 million in state taxes. Beer sales are triple that of liquor, $1.25 billion, bringing in only slightly more taxes, $78 million.

Palmer also suggested that if the state hikes the taxes, it may be great news for moonshiners, who can sell liquor a lot cheaper than ABC stores.

Others suggested it could boost trips to South Carolina, where liquor taxes are much lower.

Despite taxes and a so-so economy, liquor sales in Rowan continued to increase during the past fiscal year. Sales totaled nearly $6.4 million, up 2.5 percent, or about $200,000, from the previous year.

The largest percentage increase came in the sale of liquor for mixed beverages, from $455,000 to $524,000.

Credit card sales increased by 30 percent.

The store on Jake Alexander Boulevard continued to have the most sales, at $1.6 million, with the Kannapolis store following closely at $1.5 million.

The county stores reaped $61,000 in profits for the year ending June 30.

Lowman said the board could opt to give a portion of the profits to the county general fund.

Board members approved a motion by Frank Tadlock to transfer $30,000 to the county, keeping the remainder for upcoming renovation projects.

During the past two years, the board has retained all profits for major renovations at the five county stores.

Contact Jessie Burchette at 704-797-4254 or jburchette@salisburypost.com .

 

 

   

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