David Parham presented the ABC monthly report for April 2006 to the Vance County Board of Commissioners during Monday evening’s meeting.
Parham explained to commissioners that the report indicates the number of bottles sold at the $.05 per bottle tax rate and the number of bottles sold at the $.01 per tax rate. Bottles assessed at the $.01 tax rate contain 50 milliliters or less.
17,806 bottles were sold during April at the $.05 tax rate for a tax amount of $890.30. 3,163 bottles were sold during the same month for taxes of $31.63, for a grand total of $921.93.
Parham explained to the board that 85% of the tax goes to the county and the remaining 15% goes to the city of Henderson.
County commissioner Deborah Brown asked how the county came to sell alcohol.
Parham responded that the county was authorized to sell in 1935 and has operated at least one liquor store since then.
There are currently two liquor stores in Vance County; one within the city limits and one in the ETJ. However, the location of the ABC stores does not affect the distribution of the collected tax money.
Parham further informed the board that the profit distribution was set up by the legislative act of the North Carolina State Assembly. He told commissioners that sales in the last 15 years have been stagnant, as sales are proportional to population growth.
He indicated that sales of mixed drinks are growing, however. A tax of $3.95 per bottle is assessed on liquor sold for the purpose of selling mixed drinks.
In further discussion, it was learned that the mixed beverage tax accounts for approximately $198,000 in yearly revenue. Although the $.01 and $.05 taxes are earmarked for alchohol rehabilitation programs, the mixed beverage tax goes directly into the general funds of the taxing government entity.
County commissioner Danny Wright indicated that the city of Henderson wants a larger share of that tax. It was unclear what share of the mixed beverage tax Henderson receives in proportion to Vance County.