H 3617 General Bill, By Hayes, R.L. Altman, Fair, T.E. Huff, W.P. Keesley, Koon, 
Martin, Sharpe, R. Smith, C.Y. Waites and Wilkes
 A Bill to amend the Code of Laws of South Carolina, 1976, by adding Section
 12-21-1025 so as to impose an additional license tax on beer equal to
 forty-two hundredths cents an ounce and on wine equal to sixty-three
 hundredths cents an ounce and to dedicate a portion of the revenue from the
 tax for alcohol and drug abuse programs and enforcement

   02/28/91  House  Introduced and read first time HJ-4
   02/28/91  House  Referred to Committee on Ways and Means HJ-4

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-21-1025 SO AS TO IMPOSE AN ADDITIONAL LICENSE TAX ON BEER EQUAL TO FORTY-TWO HUNDREDTHS CENTS AN OUNCE AND ON WINE EQUAL TO SIXTY-THREE HUNDREDTHS CENTS AN OUNCE AND TO DEDICATE A PORTION OF THE REVENUE FROM THE TAX FOR ALCOHOL AND DRUG ABUSE PROGRAMS AND ENFORCEMENT.

Whereas, it has been more than twenty years since beer taxes have been increased in South Carolina and while inflation has increased by more than three hundred percent since l960, the South Carolina beer tax in constant dollars has decreased approximately sixty-nine percent; and

Whereas, because beer taxes have not kept up with inflation, beer prices in this State are artificially low, which encourages consumption, especially among young people; and

Whereas, a six-pack of beer is often priced less than a six-pack of soft drinks and during special sales and promotions, many brands of beer cost less than a regularly priced six-pack of soft drinks; and

Whereas, young people have less disposable income and are more sensitive to increases in alcohol prices and this group would show the greatest reduction in alcohol consumption as the result of increased taxes; and

Whereas, this State collects approximately one hundred seven million dollars each year in alcohol tax revenues, and spends more than two hundred forty-nine million dollars each year on alcohol abuse treatment and other costs associated with alcohol-related crime; thus spending two dollars and thirty-three cents for each dollar of revenue; and

Whereas, the total cost of alcohol-related problems in South Carolina, including reduced productivity and car crashes, is more than one and nine-tenths billion dollars each year, an expenditure of seventeen dollars and seventy-four cents for every dollar collected in alcohol tax revenues. Now, therefore,

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Article 7, Chapter 21, Title 12 of the 1976 Code is amended by adding:

"Section 12-21-1025. (A) In addition to the taxes levied in this article on beer and wine, there is levied and collected on all beer offered for sale in this State a license tax of forty-two hundredths cents an ounce or fraction of an ounce and on all wines offered for sale a license tax of sixty-three hundredths cents an ounce or fraction of an ounce. The commission shall determine the rate for metric size consistent with the rates provided in this section. The additional taxes levied by this section must be paid and collected in the same manner that other taxes levied in this article are paid and collected.

(B) The revenue from the tax imposed by this section must be credited to the general fund of the State except that the first sixteen million dollars collected annually must be distributed as follows:

(1) $3,300,000 to be distributed on a per capita basis, according to the most recent United States Census, to the county alcohol and drug abuse authorities designated pursuant to Article 3, Chapter 5 of Title 61;

(2) $4,700,000 to be distributed to meet program needs identified by county alcohol and drug abuse authorities and the South Carolina Commission on Alcohol and Drug Abuse;

(3) $2,000,000 to the South Carolina Department of Corrections to expand addictions treatment program;

(4) $500,000 to the South Carolina Alcoholic Beverage Control Commission to fund ten new agents;

(5) $900,000 to the South Carolina Department of Probation, Parole and Pardon Services to purchase treatment and aftercare services;

(6) $800,000 to the South Carolina Department of Mental Health to support Morris Village;

(7) $1,200,000 to the South Carolina Department of Youth Services for treatment and counseling services;

(8) $700,000 to the South Carolina Department of Health and Environmental Control for use with HIV, AIDS, maternal and child health;

(9) $250,000 to the South Carolina Department of Mental Retardation for prevention initiatives;

(10) $250,000 to the South Carolina Commission on Aging for prevention and treatment services; and

(11) $1,400,000 in a block grant to be managed by the South Carolina Commission on Alcohol and Drug Abuse to be awarded to public and private organizations for alcohol and other drug abuse prevention, intervention, and treatment programs and services.

(C) No revenue generated by the additional license tax levied by this section may be used to reduce or supplant existing funding."

SECTION 2. This act takes effect July 1, 1991.