With the passage of the liquor referendum in Winston County, there have been plenty of questions about the laws, restrictions and how it will impact our communities. Sources tell WWN that there have already been numerous requests for information about application for liquor licenses. Questions from the public and rumors abound and in an attempt to clarify the situation, WWN researched information provided from state and local sources that may provide some answers about what is considered liquor, how and where it can be sold and how it’s taxed. The liquor referendum and the City’s regulation will be on the agenda of Tuesday’s (Nov 15) Board of Alderman’s meeting at City Hall in Louisville.
- What’s the difference between beer and alcoholic beverages?Although beer contains alcohol, it is not considered an “alcoholic beverage” in Mississippi’s local option laws and is regulated differently from distilled spirits and wine.In Mississippi, beer is a malt-based beverage that has no more than 5% alcohol by weight. Beer that has alcohol content greater than 5% by weight is not legal in Mississippi. Products that are wine-based and the alcohol content is less than 5% by weight are regulated like beer. These are called light wine products and are seen in the market typically as wine coolers. An alcoholic beverage is either a distilled spirit or a wine product that contains more than 5% alcohol by weight. Products that are spirit-based (liquor) and that are less than 5% by weight are not legal in Mississippi. Alcoholic beverages are most often identified as items you may purchase in package stores
- Can Liquor be sold in convenience stores or grocery stores? Beer and light wine cannot be sold in package stores. Likewise, alcoholic beverages cannot be sold in convenience or grocery stores.
- Can children be in a package store or restaurant that serves liquor with their parents? Yes. Persons under the age of 21 may be inside licensed premises; however, they cannot be allowed to drink or be sold alcoholic beverages. Please note that the owner of the premises may prohibit minors from their premises at the owner’s discretion. That is why signs are often found outside package stores that indicate customers must be 21 to enter.
- Can underage persons work at licensed premises? For beer only licensed premises, anyone who is legally employed may sell or otherwise handle beer, regardless of age. The minor employee is prohibited from consuming, purchasing or otherwise personally coming into possession of beer. For ABC or alcohol licensed premises, employment to persons under 21 is generally prohibited. However, someone at least 18 years of age may wait tables, take orders and deliver alcohol products to the table IF that is in the normal scope of his/her employment. This exception does not allow someone to serve as a bartender or manager of the premises. At an ABC licensed premises, someone under 21 years of age may unload sealed cartons, boxes or similar shipping packages of alcohol products provided the package remains sealed at all times. Someone under 21 years of age may work as an entertainer at ABC licensed premises
- Who issues permits to sell alcohol? Can the city or county dictate who gets a permit? No. The permit to sell alcoholic beverages is issued by the Alcoholic Beverage Control office of the Department of Revenue. The authority to issue permits to sell alcoholic beverages is solely within the authority of the Department of Revenue; there is no provision in law for a municipality or county to issue a permit for the sale of alcoholic beverages.
- What are the legal hours of sale for alcoholic beverages? Package stores with ABC permits may only open for business from 10:00 a.m. to 10:00 p.m, Monday through Saturday. Package stores are not allowed Sunday sales and cannot open on Christmas Day.
ABC on-premises permittees may make sales of alcoholic beverages at the permitted location between 10:00 a.m. and midnight, Monday through Saturday. Sales after midnight and Sunday sales by on-premises permittees may only occur if the hours for sale have been extended by the Department of Revenue. ABC on-premises permittees in areas that have been granted resort status by the Department of Revenue are exempt from the above hours-of-operation restrictions. Package stores in resort areas are not exempt from the hours of operation above. - What is the distance from a school or church where alcoholic beverages can be sold? Alcoholic beverages cannot be offered for sale within 400 feet of a school, church, kindergarten, children’s day care or a funeral home. The minimum distance is measured from the nearest point to the nearest point of the permittee’s establishment and the church, school building, etc. However, if the area is zoned commercial or industrial, the minimum distance is 100 feet from the church, school etc. If the church, school, kindergarten, or funeral home is in an area that is zoned residential and the permittee is in an area zoned commercial, then the distance is 400 feet. A church or funeral home can waive the distance requirements; however, a school, kindergarten or day care cannot waive the distance requirement. The waiver must be in writing from the owner, governing body or appropriate officer of the church or funeral home.
- What is the distance from a school or church where beer can be sold?A municipality or county may, by ordinance, define zones or territories where beer may be sold. With some exception for existing businesses, in Louisville the distance defined is 500 feet.
- What’s the tax rate on alcohol products? Beer is subject to an excise tax of 42.68 cents per gallon; sparkling wine and champagne are $1.00 per gallon; other wines are 35 cents per gallon; and distilled spirits are $2.50 per gallon. Additionally, all alcoholic beverage products are subject to an additional 27 ½% markup on the wholesale purchase of alcoholic beverages. Beer and alcoholic beverages are subject to sales tax.
- Can restaurants serve alcohol under this referendum? Restaurants must also obtain an on-premises permit from ABC to sell liquor. In most cases, alcohol must be sold by the drink and only for consumption on the premises. The business must also keep adequate records of gross sales by food, beer and liquor categories. The restaurant must be legitimate with a proper floor plan, detailed menu and on-site food prep. Food sales must generally constitute 25% or more of gross sales.
- Who can obtain a liquor license? The department imposes stringent qualifications for an alcohol permit. License applicants must secure a bond, pass a criminal background check and possess financial responsibility. Additionally, applicants must have a suitable building and floor plan for selling alcohol. Business owners who submit all required documents may get a Mississippi liquor license in four to six weeks.
- Under this referendum, will alcohol be sold in the county (outside of the city limits of Louisville or Noxapater)? No, ABC limits permits only within municipalities unless a business is classified as a resort under Mississippi law. Therefore no package stores or bars will be permitted outside of the city limits nor will restaurants be allowed to serve liquor outside of the city limits of Louisville and Noxapater.
- Can the city(s) impose additional restrictions on the sale of liquor – above and beyond state restrictions? Yes, cities can reasonably regulate hours, advertising and distance requirements. These restrictions must be more stringent than state laws to be valid. As an example, the city of Louisville adopted a 500 foot distance policy on beer sales in 1988 as well as requiring on-premises establishments to produce 75% of their income from food related sales not the 25% required at the state level.
William McCully
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